Dual Blockade of Strait of Hormuz and Bab el-Mandeb Drives Oil Prices Above $100 as Global Energy Supply Chain Faces Severe Test
US airstrikes on Iran in July 2026 triggered retaliation, re-blocking the Strait of Hormuz and compounding Red Sea risks to Middle East energy transit.
MIDDLE EAST,ECONOMY
Global N Press
7/28/20261 min read
In July 2026, simultaneous disruptions to the Strait of Hormuz and the Red Sea escalated Middle East energy transit risks. U.S. airstrikes against Iran, launched in early July and sustained for 13 consecutive days, prompted Iranian retaliation that effectively re-blocked the Strait of Hormuz. Daily crude flows through the strait plummeted from over 8 million barrels in early July to under 2 million barrels, per The Economist.
Concurrently, Yemen’s Houthi rebels imposed a maritime embargo on Saudi Arabia on July 20. Subsequent attacks on July 23 and July 26—using ballistic missiles, cruise missiles, and drones—struck five Saudi oil tankers in the Red Sea. This blockade severed Saudi Arabia’s alternative export route, which had replaced the Hormuz channel in previous months.
Brent crude futures breached $100/barrel on July 24 for the first time in two months, surging over 7% intraday. Although Brent retreated to $85.35 by July 28, analysts caution that “political cooling without energy risk dissipation” persists. Kpler data indicates only 11 commercial vessels transited the Bab el-Mandeb on July 28—a multi-month low—with multiple Saudi-affiliated VLCCs rerouting via the Cape of Good Hope.
Iran’s military warned on July 23 that continued U.S. operations would halt all regional oil exports. Analysts warn that persistent shipping risks could push oil prices decisively above $100, intensifying global inflationary pressures.
