Home / Business and Economy / Red Sea Closure Threatens $100 Oil Prices
Red Sea Closure Threatens $100 Oil Prices
22 Jul
Summary
- Houthi threats to Red Sea shipping could push oil past $100 a barrel.
- Oil prices climbed on July 22, with Brent near $91 and WTI near $85.
- Kazakhstan terminal closure also contributes to rising global oil prices.
Global oil prices extended their gains on Wednesday, July 22, as mediation talks in West Asia showed no significant progress and tensions escalated. Brent crude prices surpassed $91 a barrel, while US WTI crude neared $85, marking consecutive session increases.
The Houthi group in Yemen threatened to disrupt shipping in the Red Sea and the Bab al-Mandeb strait, prompting oil tankers to alter course. This comes as US President Donald Trump warned of a US response to any such disruptions.
Further contributing to market instability, Kazakhstan has been forced to halt crude shipments to its primary export terminal on Russia's Black Sea coast due to ongoing attacks. Approximately 80% of Kazakhstan's crude exports rely on this terminal, positioning it as a critical supplier to Europe.
Analysts suggest that a complete closure of the Red Sea could propel oil prices beyond $100 a barrel. Goldman Sachs has cautioned that prolonged disruptions might send prices to $120 by the fourth quarter, though their base forecast remains at $80.
