NEW YORK, July 23, 2026, 12:12 p.m. EDT — U.S. cash markets opened for trading.
- Brent climbed 7% to $100.71, marking its first move above $100 since May.
- Rerouting a tanker from Yanbu to Asia increases the journey by roughly 34 days and raises costs by more than $6 million per vessel.
- Exxon Mobil NYSE:XOM rose by 2.0% and Chevron NYSE:CVX added 1.7%, while Valero Energy NYSE:VLO dipped 0.2%.
Brent crude rose past $100 on Thursday following an incident in which a Saudi tanker was hit in the Red Sea. The event heightened concerns over supply disruptions spreading beyond the Strait of Hormuz.
The key concern for investors is route redundancy rather than just headline supply. Saudi Arabia relies on Yanbu, on the Red Sea, as its primary overland alternative to Hormuz. Its quickest access to Asian markets passes through Bab el-Mandeb.
Saudi state media reported the Encelia was hit and said the crew was unharmed. The Houthis also said they targeted the Layla, but as of midday, that assertion could not be independently verified.
According to initial figures from the EIA, the vulnerable network is significant. In the first quarter, 14.6 million barrels per day passed through Hormuz, 5.4 million through Bab el-Mandeb, and 4.9 million were transported via Suez and the SUMED pipeline.
Saudi Aramco TADAWUL:2222 is able to transport crude oil westward using its East-West pipeline. This route allows for the export of up to 5 million barrels per day at the Yanbu terminal. Saudi Arabia relied on the pipeline extensively when Gulf maritime movement was disrupted.
The Red Sea terminus of this alternate route is now vulnerable. Transporting Yanbu crude via Suez to Asia increases the journey by nearly 10,000 nautical miles. This extended path results in an extra 34 days at sea.
Freight and canal fees are estimated at over $6 million per tanker. For a shipment carrying 2 million barrels, that amounts to upwards of $3 a barrel. Additional expenses for fuel and insurance would be extra.
The most distinct investor indication came from the cross-asset gap. The following readings were recorded from 10:52 to 11:57 a.m. EDT. Reuters provided the route-cost estimates for shipping data.
| Measure | Latest verified reading | Comparison |
|---|---|---|
| Brent crude | $100.71, +7.0% | Up nearly 40% in July |
| WTI crude | $92.01, +6.0% | Tops $90 for first time since June 11 |
| Exxon Mobil NYSE:XOM | $157.59, +2.0% | Lags Brent by 5.0 points |
| Chevron NYSE:CVX | $196.24, +1.7% | 5.3 points behind Brent |
| Valero Energy NYSE:VLO | $310.39, -0.2% | Traded opposite crude’s direction |
| Yanbu-to-China voyage | Over 50 days rerouted | Typically more than 20 days |
| Known added cost | Above $6 million per ship | Over $3 per barrel, excluding fuel and insurance |
Brent advanced by nearly four times the average increase seen among the largest oil companies. Shares of Valero declined. This divergence indicates investors interpreted Thursday’s surge as a temporary route premium, not a fundamental shift in earnings outlook.
Physical-market figures continue to challenge the idea of investor complacency. Over the past seven days, Gulf loadings dropped to 2.5 million barrels per day, while the 30-day average stood at 6 million barrels per day.
Shipping activity declined at both chokepoints on Wednesday. Vessel traffic at Bab el-Mandeb dropped to 27 ships, compared with 38 on Tuesday. The Hormuz strait recorded three commodity vessels, down from 18 the previous week.
On Thursday, two supertankers bound for China and loaded with 4 million Saudi barrels were making their way through the route. Their journey is expected to indicate if the Red Sea continues to be viable for commercial shipping.
Aramco is expanding an additional export channel. According to trading sources, the company offered more spot cargoes from the Sidi Kerir terminal in Egypt. The sources did not specify the quantities or the prices. Loadings at Sidi Kerir have averaged 427,000 barrels per day so far this year, compared with 735,000 barrels per day the previous year.
TotalEnergies NYSE:TTE demonstrated the benefit of integration in mitigating supply disruptions. Adjusted net profit for the second quarter climbed 67% to $6 billion. Income from refining and chemicals soared 362% to reach $1.8 billion.
“Hormuz is a battleground and the risks of crossing are extremely high,” CEO Patrick Pouyanné stated. Pouyanné noted that sporadic openings might establish a new norm. Reuters
The uneven nature of oil-equity exposure is highlighted by the results. TotalEnergies benefited from trading and refining gains even with disrupted routes. In contrast, Valero’s drop indicated that not every downstream position was favored by the market.
Risks are present in both directions. A safe-passage agreement might swiftly eliminate the route premium. Further attacks have the potential to block both ends, drive up inflation, and reduce oil demand.
The next operational test for the market is underway. Traders are focused on verified tanker movements, departures from the Gulf and loadings at Sidi Kerir. These indicators will help determine if $100 holds as a support level or if it is just a temporary peak.
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