WTI Rises 6.2% as Middle East Tensions Push Brent Above $100
Key Takeaways
- •WTI crude settled at $92.19 per barrel after a 6.2% gain, while Brent rose 7% to $100.69, marking its first settlement above $100 since May.
- •Houthi forces in Yemen claimed responsibility for attacks on two Saudi oil tankers in the Red Sea and announced restrictions on Saudi shipments through the Bab el-Mandeb Strait.
- •The U.S. Senate rejected an Iran war powers resolution 47-49, while the House passed a separate measure 214-208, highlighting continued congressional division over military authority.
- •The U.S. national average gasoline price reached $4.09 per gallon on July 23, representing a 15-cent increase from the prior week.
- •Core OPEC+ producers plan to raise September output by 188,000 barrels per day, though regional transport disruptions could limit the impact on available supply.
Crude oil prices rose sharply in global trading on Thursday as renewed fighting in the Middle East heightened concern about the security of key supply routes. West Texas Intermediate, the main U.S. crude benchmark, rose 6.2% and settled at $92.19 per barrel, while Brent crude, the global benchmark used to price many international cargoes, advanced 7% to $100.69. Brent moved above $100 for the first time since May as traders monitored reported attacks on Saudi oil tankers and disruption risks near major shipping channels.
The oil rally coincided with a U.S. Senate vote rejecting a measure that sought to restrict military action against Iran without congressional approval. Higher energy costs also pushed the U.S. national average gasoline price to $4.09 per gallon.
Middle East Supply Risks Drive the Oil Rally
Houthi forces in Yemen claimed responsibility for attacks on two Saudi oil tankers in the Red Sea and announced restrictions on Saudi shipments. The incidents increased concern around the Bab el-Mandeb Strait, the waterway connecting the Red Sea with the Gulf of Aden. Saudi Arabia has used that route as an alternative export channel when traffic through the Strait of Hormuz faces disruption.
Iranian forces have also tightened controls around the Strait of Hormuz during the conflict. The Bab el-Mandeb Strait and the Strait of Hormuz carry a large share of global crude and refined fuel shipments. Because these waterways link Middle Eastern exporters with customers in Asia, Europe, and other regions, even limited interruptions can affect freight availability and delivery schedules. As tanker traffic slowed, traders added a larger risk premium while shipping companies faced higher insurance, security, and rerouting costs.
Core OPEC+ producers are preparing to raise September output by 188,000 barrels per day, according to Reuters. That increase would provide additional supply, but it comes as traders assess whether regional transport disruptions could reduce the volume of available barrels. The distinction matters for oil markets because extra production only eases supply pressure if cargoes can be loaded, insured, and delivered through secure routes.
Brent has gained nearly 40% since the Iran conflict began in February. The latest five-day increase ranks among the strongest advances since March for major global crude futures contracts.
Senate Vote Leaves Iran Policy Divided
The U.S. Senate rejected a war powers resolution on Thursday in a 47-49 vote. The proposal would have required congressional authorization for continued U.S. military action against Iran. Its defeat allowed the administration to continue current operations without the restriction proposed in the resolution.
The House passed a separate Iran war powers measure by a 214-208 vote. The different outcomes highlighted continued division in Congress over military authority and the duration of the conflict. Oil traders followed the votes as renewed strikes and political uncertainty raised questions about the security of regional production facilities and shipping routes.
WTI Moves Above Technical Resistance
WTI moved above its 100-day moving average near $89.71 during Thursday’s rally. The contract also tested the 50% Fibonacci retracement level around $93.26 and reached an intraday high near $93.50 before giving back part of the advance. The move put crude above a technical level that had limited gains since June.
WTIUSD | Source: TradingView
The $89.71 area is now a nearby reference point for traders following the rally. A sustained move above $93.26 would bring the June high near $97 back into view, while a decline below the 100-day average would weaken the latest advance. WTI traded near $67 earlier in July before rising by more than $24.
Gasoline Prices Add Inflation Pressure
Rising crude oil prices have already lifted fuel costs across the United States. Reports show the national average price for regular gasoline at $4.09 on July 23, up 15 cents from the previous week. Most states now report average prices near or above $4 per gallon as refiners and retailers pass through higher crude costs.
Gas and Crude Chart | Source: X
Higher gasoline and diesel prices can increase costs for transport, aviation, farming, and food distribution. Businesses may face larger fuel bills when moving goods by road, sea, and air. Central banks also monitor energy prices when assessing inflation, interest rates, and household spending conditions. The next data points for energy markets include tanker movements through regional chokepoints, any further changes to OPEC+ supply plans, and official fuel-price readings as crude costs move through refining and retail channels.