Analysts said the escalation in the Red Sea region has raised fears of fresh disruptions to global energy supplies.
On the Multi Commodity Exchange, crude futures for August delivery increased by ₹477, or nearly 6%, to ₹8,887 per barrel.
Traders said fresh buying gathered pace after renewed attacks in the Red Sea region heightened fears of disruptions to energy exports from the Gulf nations.
In a post on Truth Social, US President Donald Trump said, “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 the overseas markets, Brent crude for September delivery soared $6.16, or nearly 7%, to $100.23 per barrel, reclaiming the $100 mark for the first time since May 15, 2026, when it traded at $100.32 per barrel.
The West Texas Intermediate (WTI) crude for the September contract also rose $4.22, or 5%, to $91.05 per barrel on the New York Mercantile Exchange (NYMEX).
Analysts said Brent, which had touched $126 per barrel during the peak of the conflict in April before falling to around $71 at the start of this month, has staged a sharp rebound on renewed geopolitical risks.
Crude has recorded its fastest monthly gain since disruptions to Gulf oil exports through the Strait of Hormuz earlier this year, with the conflict entering a more dangerous phase over the past 24 hours.
According to analysts, Yemen’s Houthis have escalated 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 key export route that Riyadh has increasingly relied upon to bypass the Persian Gulf.
They added that the US military carried out airstrikes on Iran for the 12th consecutive night on Wednesday, while Tehran retaliated by targeting US-linked military installations in Kuwait and Jordan.
Meanwhile, Goldman Sachs has cautioned that Brent crude could climb to as high as $120 per barrel by the end of the year if exports through the Strait of Hormuz are not restored.
