US Energy Stocks Rally as Houthi Attacks Push Brent Crude to $100

U.S. energy shares rose in premarket trading on Thursday as escalating geopolitical tensions in the Middle East drove the global oil benchmark Brent crude to briefly touch $100 a barrel. The surge followed reports that Houthi forces attacked two Saudi oil tankers, fueling investor concerns over significant disruptions to global energy supplies.

Oil Prices Spike on Supply Fears

The attacks on vessels in the Bab el-Mandeb strait, a critical maritime chokepoint, have intensified a regional conflict. Houthi forces in Yemen have reportedly declared a naval blockade on Saudi shipments, raising fears that disruptions to Middle East oil exports could broaden beyond the Strait of Hormuz.

In response to the heightened risk, crude prices extended a five-day rally. According to a Reuters report:

• Brent crude futures jumped as much as 6.3% to reach $100 per barrel by 1302 GMT, a level not seen since May 26.
• U.S. West Texas Intermediate (WTI) crude futures climbed 5.2% to $91.30 per barrel.

Broad Gains Across Energy Sector

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The rally in crude prices provided a strong tailwind for U.S. energy equities. Major integrated oil companies, exploration and production firms, and refiners all saw gains in premarket activity.

Shares of oil majors Exxon Mobil and Chevron rose 1.6% and 1.7%, respectively. Other producers including Diamondback Energy, Devon Energy, ConocoPhillips, and Occidental Petroleum were up between 2% and 2.5%. Refiners also advanced, with Valero Energy, Marathon Petroleum, and Phillips 66 gaining between 2.1% and 2.6%.

Market Context

The renewed conflict is tightening a market that some analysts had expected to see loosen. "We continue to expect the production recovery process in the Middle East to be slower than the market anticipates," said UBS analyst Giovanni Staunovo, as cited by Reuters. "This should keep the oil market tight and prices supported."

Energy stocks have been volatile, reacting to shifts in the conflict. The sector had previously pulled back after the United States and Iran reached a temporary peace agreement. The latest flare-up reverses a recent trend, which saw analysts in a June Reuters poll cut their 2026 oil price forecasts for the first time since the start of the Iran war.