Houthis Say They Hit Saudi Oil Tankers in Red Sea as Iran Conflict Widens

• The Houthis targeted tankers named Encelia and Layla; Saudi authorities confirmed the Encelia was struck, causing a fire at the bow with no casualties reported
• U.S. Central Command completed another round of strikes against Iranian military sites, targeting maritime capabilities, missile and drone storage, and air defense systems
• Oil prices rose over 2% on the news, with Brent crude reaching $96.08 per barrel as President Trump threatened to destroy Iranian bridges or power plants for each attack in the Strait of Hormuz

Summary: Houthis Target Saudi Oil Tankers as Iran Conflict Escalates

Key Developments:

Yemen's Iran-backed Houthi militants claimed responsibility for drone and missile attacks on two Saudi Arabian oil tankers—the Encelia and Layla—in the Red Sea for allegedly violating their maritime blockade. This marks the first attack since the Houthis announced a naval blockade against Saudi Arabia.

Confirmed Details:

The Saudi Press Agency confirmed the Encelia was struck, causing a fire at the vessel's bow with all crew members reported safe. The UK Maritime Trade Operations (UKMTO) reported an "unknown projectile" hit a Saudi tanker approximately 130 kilometers from Al Shuqaiq, resulting in an onboard fire with no casualties. No update was provided on the Layla.

U.S. Military Response:

U.S. Central Command completed its 12th consecutive night of strikes against Iranian military targets, including maritime capabilities, missile/drone storage facilities, and air defense assets. The U.S. has redirected nine commercial vessels and disabled one to enforce a blockade preventing ships from entering or leaving Iranian ports.

Trump's Escalation:

President Trump threatened to destroy one Iranian bridge or power plant for each attack on ships in the Strait of Hormuz, signaling the collapse of last month's interim peace agreement. Iran vowed retaliatory strikes against U.S.-linked infrastructure and energy assets in the region.

Market Impact:

Oil prices surged on Thursday morning. Brent crude futures (September delivery) rose 2.1% to $96.08 per barrel, while WTI crude futures increased 1.5% to $88.06.

The escalating conflict threatens critical maritime routes and global energy supplies, with potential broader implications for Middle Eastern stability.