Friday, July 24, 2026

Oil Surges Above $100 as Red Sea Attacks Escalate Iran Conflict

Yemen’s Houthi movement, which is backed by Iran, announced on Thursday that it attacked two Saudi oil tankers in the Red Sea. This is a significant moment as it shows the Houthis are acting on their recent threat to block Saudi maritime shipping.

The Houthis identified the tankers as the Encelia and the Layla. Both ships are registered in Saudi Arabia, according to MarineTraffic, a maritime tracking service. The Layla is a tanker carrying crude oil, while the Encelia is transporting oil products.

The attacks occurred about 70 nautical miles, or 80 miles, from the Saudi coast, as reported by maritime risk consultant Marisks. The Encelia was damaged by a projectile, and the Layla was also targeted during these incidents. Satellite images from NASA show the Encelia on fire in the Red Sea.

Marisks noted that this action seems to be the Houthis enforcing their announced maritime blockade against Saudi Arabia. There is concern that the Houthis may expand their attacks to include foreign ships linked to Saudi Arabia.

The UK Maritime Trade Operations (UKMTO) confirmed that one tanker was attacked near Al Shuqaiq in Saudi Arabia but did not specify which vessel. The Saudi Press Agency reported the Encelia was targeted, causing a fire.

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