Oil prices climbed Monday after Houthi militants in Yemen declared a maritime embargo on Saudi Arabia, threatening a critical outlet for crude exports that has helped offset supply disruptions in the Strait of Hormuz.
Brent crude topped $90 overnight before easing; the Houthi move could cut off Saudi pipeline exports that have offset Iran's tanker attacks
CHARLY TRIBALLEAU / Getty Images
Oil prices climbed Monday after Houthi militants in Yemen declared a maritime embargo on Saudi Arabia, threatening a critical outlet for crude exports that has helped offset supply disruptions in the Strait of Hormuz.
Brent crude futures settled at $88.87 per barrel on Monday, a gain of 0.87%, while U.S. West Texas Intermediate crude futures added 0.44% to reach $82.85 per barrel. The benchmark had rallied as much as 4% during overnight trading, crossing above $90 per barrel, following the U.S. confirmation that at least three service members were killed in recent clashes with Iran. Prices retreated after Iran's Foreign Ministry spokesman Esmail Baghaei said Tehran could pursue negotiations with Washington based on its own interests, according to CNBC.
The Houthi embargo threatens Saudi Arabia's pipeline exports to a Red Sea terminal, which have acted as a key release for global crude markets strained by Iran's tanker attacks in the strait. Closure of the Bab el-Mandeb Strait, which serves as the chokepoint linking the Red Sea to open-ocean shipping lanes, has been a longstanding Houthi threat.
President Donald Trump also intensified pressure on Iran on Monday, writing on Truth Social: "Every time Iran kills an American Soldier they will pay for that killing many times over!" Trump said he had relayed the order to senior military leadership, including Secretary of War Pete Hegseth and Chairman of the Joint Chiefs of Staff Daniel Caine.
U.S. Central Command said it completed a ninth consecutive night of strikes against Iran on Sunday, targeting military command centers, air defense and coastal surveillance sites, maritime capabilities, and communications networks. CENTCOM said the strikes were aimed at reducing Iran's ability to attack commercial vessels transiting the Strait of Hormuz.
A projectile struck an oil products tanker operating off the coast of Oman over the weekend, setting the ship ablaze, the United Kingdom Maritime Trade Operations Centre reported Sunday. All crew members evacuated and were subsequently rescued by a tugboat. The International Maritime Organization named the stricken ship as the Kavomaleas, a Malta-flagged vessel.
Iran targeted a Kuwaiti power and desalination facility for the second consecutive day, the Kuwait Times reported, as cited by CNBC — a significant threat given the country's dependence on such infrastructure for its drinking water supply.
The national average for gasoline climbed back to $4 per gallon Monday, a level not seen since June 17, driven by an 18% run-up in U.S. crude this month. That date marked the signing of a U.S.-Iran interim deal aimed at restoring strait navigation.
The conflict has its roots in a ceasefire that quickly unraveled. The U.S. reinstated a naval blockade of Iranian ports after Trump declared the June memorandum of understanding "over" at a NATO summit, saying both sides disputed language over who controls strait traffic. Shipping through the Strait of Hormuz has fallen sharply since hostilities resumed, with vessel crossings down roughly 85% from pre-conflict levels, according to commodity flow monitor Kpler.
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