Brent Could Top $120 by Year-End as Houthi Gains Threaten Red Sea and Hormuz Flows
Updated
Updated · OilPrice.com · Sep 11
Brent Could Top $120 by Year-End as Houthi Gains Threaten Red Sea and Hormuz Flows
2 articles · Updated · OilPrice.com · Sep 11
Summary
Brent crude could exceed $120 a barrel by the end of 2026 if Middle East fighting persists, RBC Capital Markets’ Helima Croft said, after Brent briefly neared $110 and both Brent and WTI moved above $100.
Mokha’s capture by Yemen’s Houthis has heightened the risk to Bab el-Mandeb shipping and could enable more direct attacks on Saudi energy infrastructure and Red Sea tankers, adding to disruption fears around the Strait of Hormuz.
That oil rally is already feeding into broader markets: bond yields have jumped on inflation worries, and JPMorgan now expects 8 to 9 developed-market central banks to raise rates by year-end.
Asian governments are also being pushed toward more aid for households and businesses as diesel and fuel costs climb, with little sign of relief while fighting continues and peace talks remain absent.
With key shipping chokepoints compromised, could a $150 oil shock trigger a global recession before the year ends?
As Middle East tensions deplete global oil safeguards, are central banks powerless to stop an impending inflation surge?
If Saudi Arabia's alternative Red Sea ports fall under attack, how will the world secure its energy supply?
The September 2026 Oil Crisis: Chokepoint Blockades, Soaring Prices, and a New Global Energy Order
Overview
In September 2026, the global energy market was rocked by a dual chokepoint crisis as the Strait of Hormuz and Bab el-Mandeb Strait were disrupted, causing oil prices to surge dramatically. This turmoil began with US-Israeli strikes on Tehran, leading Iran to close the Strait of Hormuz, while the Houthis blocked the Red Sea, sealing off key trade routes. As a result, Saudi Arabia’s export routes were squeezed, its oil production collapsed, and shipping costs soared. The crisis triggered inflation, forced central banks to raise interest rates, and pushed millions toward poverty. In response, governments released emergency oil reserves and accelerated efforts to bypass traditional chokepoints, signaling a permanent shift in global energy routes and market dynamics.