Oil Hits $100 on Red Sea Attacks, Raising Fuel Price Fears

Saudi authorities confirmed that one of the tankers caught fire after being attacked while transiting the Red Sea.

Global oil prices surged above $100 per barrel on Thursday after attacks on commercial vessels in the Red Sea heightened concerns over disruptions to one of the world's busiest energy shipping routes.

Brent crude, the international benchmark, climbed 6.9 percent to $100.60 per barrel, while US West Texas Intermediate (WTI) rose 5.63 percent to $91.72 per barrel.

The rally followed attacks by Yemen's Houthi rebels on two Saudi oil tankers, according to Reuters, raising fresh fears over the security of oil shipments through the Red Sea and the Strait of Hormuz.

The Houthis claimed responsibility for the attacks, describing them as part of a military operation targeting Saudi oil exports.

Saudi authorities confirmed that one of the tankers caught fire after being attacked while transiting the Red Sea.

The latest escalation came days after the Iran-backed group threatened to target vessels transporting Saudi crude through the Bab el-Mandeb Strait and announced what it described as a naval blockade of Saudi Arabia.

The development coincided with continued US military strikes on Iran, with Washington saying it carried out an 11th consecutive night of attacks on Wednesday, further intensifying geopolitical tensions across the Middle East.

The spike in crude prices could have mixed implications for Nigeria. While higher oil prices may boost government revenue and foreign exchange earnings as an oil-producing nation, they also risk increasing the cost of imported refined petroleum products and pushing up domestic fuel prices.

Reflecting the pressure on the market, Dangote Petroleum Refinery on Thursday raised its ex-gantry petrol price from ₦1,075 to ₦1,215 per litre as it resumed the sale of petrol in naira. The increase could translate into higher pump prices nationwide if sustained.