Updated on: July 23, 2026 / 9:38 AM EDT / CBS News

International petroleum costs reached the $100 per barrel mark on Thursday due to rising tensions in the Middle East, as Iran-supported Houthi fighters from Yemen attacked vessels in the Red Sea.

Brent crude, the global benchmark, momentarily exceeded $100 but fell back to $99.48 by 9:30 a.m. ET according to FactSet information. West Texas Intermediate, the American standard, reached $90.74 per barrel, increasing by $3.91 or 4.50 percent.

Fuel costs are also moving upward, with the nationwide average reaching $4.09 per gallon on Thursday, rising from $3.94 the prior week, per AAA figures.

Houthi fighters stated they hit two Saudi petroleum carriers in the Red Sea on Wednesday. The strikes put pressure on shipping through the Bab el-Mandeb Strait, which handles about 7 percent of worldwide oil supply, based on Oxford Economics. The waterway links the Red Sea to the Gulf of Aden and serves as a key trade route.

The jump in petroleum costs adds complexity for the Federal Reserve ahead of its July 29 rate decision. Higher oil values risk boosting inflation and could lead the central bank to hold rates steady or even raise them, analysts note.

"Rate cuts investors were counting on for later this year look a lot less certain today than they did even a week ago, and then they were on shaky ground," said Nigel Green, the CEO of investment firm deVere Group, in an email.

There is now a 36 percent chance the Fed could raise its key rate on July 29, according to CME FedWatch, which relies on 30-day Fed Funds futures prices to gauge central bank moves. A week earlier, that chance was around 11 percent, its data indicates.

The conflict also showed further escalation, with the U.S. increasing refueling planes sent to Israel. Open-source flight data revealed American B-1 bombers departing the U.K. The U.S. has conducted 12 straight nights of strikes on targets across Iran.

Treasury yields climbed with higher oil prices, as the 10-year Treasury rose to 4.71 percent.

The last time global oil prices settled above $100 was on May 22, data from FactSet shows.

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Oil Imports
Red Sea
Oil and Gas