Experts noted that the increased conflict in the Red Sea region has sparked concerns about potential disruptions to global energy supplies.
On the Multi Commodity Exchange, crude futures for August delivery rose by ₹477, or nearly 6%, reaching ₹8,887 per barrel.
Traders indicated that new buying momentum picked up after renewed attacks in the Red Sea region raised alarms about interruptions to energy exports from Gulf nations.
In a message on Truth Social, US President Donald Trump remarked, “Now they (Houthis) are starting up again, shooting at two Saudi Arabian ships last night. Please let this TRUTH serve to represent that if they do this again, the US will hold Iran responsible.” In international markets, Brent crude for September delivery surged by $6.16, or nearly 7%, to $100.23 per barrel, marking its first re-entry above the $100 level since May 15, 2026, when it traded at $100.32 per barrel.
The West Texas Intermediate (WTI) crude for the September contract also increased by $4.22, or 5%, to $91.05 per barrel on the New York Mercantile Exchange (NYMEX).
Analysts observed that Brent, which had hit $126 per barrel at the height of the conflict in April before dropping to around $71 at the beginning of this month, has experienced a significant rebound due to renewed geopolitical risks.
Crude has seen its fastest monthly increase since the disruptions to Gulf oil exports via the Strait of Hormuz earlier this year, with the conflict escalating to a more perilous phase in the last 24 hours.
According to analysts, Yemen’s Houthis have shifted from threatening a blockade of Saudi Arabia to attacking two of Saudi’s oil tankers in the Red Sea, raising concerns over the security of a critical export route that Riyadh has increasingly relied on to circumvent the Persian Gulf.
They also noted that the US military conducted airstrikes on Iran for the 12th consecutive night on Wednesday, while Tehran retaliated by targeting US-affiliated military sites in Kuwait and Jordan.
Meanwhile, Goldman Sachs has warned that Brent crude might rise to as high as $120 per barrel by year-end if exports through the Strait of Hormuz are not resumed.
