Brent Crude Passes $100 as Houthi Attacks Threaten Logistics

For supply chain executives, the Red Sea is more than a shipping lane—it is a vulnerability. The Houthi attack that sent Brent crude over $100 is a sharp reminder that geopolitical shocks can instantly inflate logistics costs and disrupt just-in-time delivery models. With interest rates poised to rise, inventory financing costs will compound the pain, demanding a reassessment of sourcing strategies and risk mitigation.

Gold prices extended declines on Friday, July 24, 2026, falling from a two-week high after Brent crude oil surged past $100 a barrel, intensifying inflation fears and reinforcing the case for higher interest rates. The spot gold price slipped to $4,030.09 per ounce, down more than $130 from its mid-week peak, mirroring a 2% tumble the previous session. This retreat came as the benchmark 10-year U.S. Treasury yield soared to its highest level since January 2025, propelling the U.S. dollar upward and draining safe-haven allure from non-yielding assets.

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The spot gold price slipped to $4,030.09 per ounce, down more than $130 from its mid-week peak, mirroring a 2% tumble the previous session.

The catalyst for oil's dramatic 7% surge was a Houthi rebel attack on two Saudi oil tankers in the Red Sea, which prompted U.S. President Donald Trump to threaten major military retaliation. The escalation immediately reinvigorated supply disruption fears, pushing Brent crude above the $100 threshold for the first time since May. This geopolitical shock underscores the delicate balance in global energy markets, where even isolated incidents can trigger outsized price spikes given already tight spare capacity.

The confluence of rising energy costs and robust inflation prints leaves the Federal Reserve with limited room to loosen policy, despite a weakening economic backdrop. The CME FedWatch Tool indicates an 81% probability of a rate hike at the Fed's September meeting, while the central bank is widely expected to stand pat at its upcoming meeting next week. The European Central Bank similarly held rates on Thursday but left the door open to a September increase, signaling that global central banks remain in inflation-fighting mode. Higher rates diminish gold's attractiveness by increasing the opportunity cost of holding it, hence the metal's downward pressure.

For gold specifically, the short-term headwind from rising real yields is acute, yet the metal's role as an inflation hedge may find support if price pressures persist. Spot silver followed gold lower, down 0.7% to $57.29, while platinum and palladium also declined. In the gold mining sector, Newmont, the world's largest producer, managed to beat Q2 profit estimates, as realized gold prices remained elevated in the first half of 2026, offsetting production dips. Meanwhile, Azerbaijan's sovereign wealth fund SOFAZ maintained its gold hoard at 178.1 metric tons, signaling long-term confidence.