Oil Prices Drop Amid Continued Red Sea Shipments Despite Houthi Threats
On July 24, 2026, crude and gasoline prices fell after rebounding sharply on Thursday due to renewed tensions in the Red Sea. The Iran-backed Houthis launched an attack on Saudi oil tankers earlier that week, raising concerns over regional shipping disruptions beyond the Strait of Hormuz. However, continued shipments through the area have eased some fears, leading to a pullback in prices. Meanwhile, geopolitical developments remain volatile as former U.S. President Donald Trump hinted at potential military action against Iran during an Axios interview. The Houthis continue to threaten Saudi oil exports via Yanbu and warn shipowners not to call on Saudi ports. In parallel, the U.S.-Iran conflict has escalated for 13 consecutive days. On a separate note, Ukraine’s intensified drone attacks have significantly impacted Russian energy infrastructure, reducing crude production and refining capacity in Russia to multi-year lows. Despite this, increased Russian crude exports are adding bearish pressure on global oil prices.