Brent crude oil traded above $100 a barrel on Tuesday for the first time in three months, after Iran-backed Houthi fighters struck oil facilities in southern Saudi Arabia.

The benchmark reached $100.03. A brief move above the line in late July reversed the same session, leaving May as the last time Brent held $100.

Houthi Drones Hit Four Saudi Cities

Houthi forces launched dozens of drones and ballistic missiles at Abha, Jazan, Najran and Khamis Mushait on Tuesday.

Fires broke out at Saudi Aramco sites and 73 people were wounded, including women and children. Jazan hosts a refinery that processes 400,000 barrels a day.

Saudi military spokesman Maj. Gen. Turki al-Malki called the assault a serious escalation and promised deterrent measures.

The attacks followed US strikes on three Iranian oil tankers over the weekend. Behind both sits the war between the United States and Iran, now in its seventh month.

BeInCrypto reported last week that renewed fighting had pushed oil to a five-week high. Prices have added roughly $5 since.

Hormuz Traffic Collapses Again

Hormuz shipping carried 8 million to 9 million barrels a day before fighting resumed on August 30. Flows then dropped below 2 million, according to Rystad Energy chief economist Claudio Galimberti.

Gulf crude exports now run near 11 million barrels a day, against 18 million before the war. Physical grades are tighter still, with Dubai and Oman trading between $104 and $105.

“Physically things are incredibly tight.”

David Fyfe, chief economist at Argus Media, said diesel markets are “screaming shortage.” European gas prices hit a three-year high last week, a sign the squeeze reaches past crude.

What Comes Next

Goldman Sachs raised its Brent forecast by $5 on Tuesday, to $85 for December and $80 for 2027. The bank flagged a path above $120 if Gulf output stays 4 million barrels a day below pre-war levels.

Energy is already driving US inflation. Consumer prices rose 3.4% in the year to July. Gasoline climbed 24.6% and the wider energy index 14.7%, while core inflation sat at 2.5%.

August figures arrive Friday. Meanwhile, Iran has answered new US proposals with conditions passed through intermediaries, so the Hormuz standoff shows little sign of clearing.

Source: BeInCrypto