Live updates: Oil tops $100 a barrel as Red Sea attacks mark new escalation in Iran conflict | CNN

Live Updates

Oil tops $100 a barrel as Red Sea attacks mark new escalation in Iran conflict

still_22831464_25041_still.jpg
Rubio says Iran "begging" US to make a deal, adds Trump's policy is "a head for an eye"
0:47 • Source: CNN
still_22831464_25041_still.jpg
0:47

Here's the latest

• Widening conflict: Yemen’s Iran-backed Houthis claimed to have struck two Saudi oil tankers in the Red Sea. US President Donald Trump warned Tehran would be held accountable for any further Houthi attacks in the Strait of Hormuz. US Secretary of State Marco Rubio said Iran “suckered” the group into attacking shipping lanes.

Oil hits $100: As concerns deepen about the flow of crude from the region, global oil prices climbed to $100 a barrel and average US gas prices rose to $4.09.

War powers: The US House voted to halt the Iran conflict absent congressional approval, marking a significant rebuke to Trump’s war powers. But even if a similar measure passes the Senate in an upcoming vote, it would not compel the administration to end the war.

• On the ground: Jordan and Kuwait reported fresh Iranian attacks targeting sites in their countries. US strikes killed two people at an Iraq-Iran border crossing, Iranian state media reported.

33 Posts

House votes to restrict Trump’s Iran war powers

President Donald Trump arrives for a Rose Garden Club Lunch at the White House in Washington, DC, on July 6.

The US House of Representatives has voted to halt President Donald Trump’s war in Iran absent congressional approval, the latest repudiation by lawmakers of the president’s handling of the conflict.

Four Republicans voted with Democrats in support of the measure, which was brought by Democratic Rep. Pramila Jayapal. The vote was 214 to 208.

What comes next: The US Senate is expected to vote soon on a similar measure. But even if it passed the Senate, it would not compel the administration to end the war. Concurrent resolutions, which are not presented to the president for signature or veto, lack the force of law.

Big picture: The House resolution still amounts to a significant rebuke.

The vote comes amid escalations in the renewed conflict after a recent ceasefire came to an end. This marks the second time the House has voted to check the president’s ability to continue waging war, but the first after the memorandum of understanding between the US and Iran collapsed.

Democrats have repeatedly forced votes to limit Trump’s war powers in both the House and the Senate, but the campaign has gradually picked up more GOP support in a sign of growing discontent within the party over the ongoing conflict. This vote renews the spotlight on the conflict on Capitol Hill.

Rubio claims Iran “suckered” Houthis into attacking vessels along the Red Sea

Secretary of State Marco Rubio meets members of the armed forces before departing from Ninoy Aquino International Airport in Manila, Philippines, following his visit Thursday.

US Secretary of State Marco Rubio slammed Yemen’s Houthi rebels for getting “suckered” into attacking shipping lanes in the Red Sea on Thursday, calling on the Iran-backed group to “de-escalate.”

Rubio told reporters that the Houthis “largely were smart and stayed out of all this throughout the conflict.” “They now apparently have gotten themselves suckered into this, going after Saudi Arabia and their ships,” he said in Manila, the Philippines.

Earlier this week, the Houthis announced a blanket maritime prohibition on Saudi vessels, a significant escalation that has drawn regional actors into the fighting between Tehran and Washington. They are are a key ally of Iran, having repeatedly threatened to block the Bab al-Mandeb Strait – a crucial hatch at the southern end of the Red Sea. Just on Thursday, the group claimed to have hit two Saudi oil tankers in the Red Sea – sending oil prices spiraling.

The Houthis had accused Riyadh of striking Yemen’s Sana’a Airport, effectively signalling the end of a UN-brokered truce signed with Saudi Arabia in 2022. It came after the opposing Saudi-backed Yemeni government claimed Tehran had dispatched a flight of military and security staffers bound for the Houthis.

The secretary of state repeated that accusation on Thursday, saying the Houthis “decided to send direct flights from Tehran into Yemen, carrying IRGC elements. … And the Saudis responded to it, and that’s what’s led to the situation we’re now facing.”

Iraqi prime minister visits Tehran following Washington meeting

Iraqi Prime Minister Ali al-Zaidi was welcomed by Iranian President Masoud Pezeshkian at Sa’dabad Palace as he visits Tehran on Thursday.

It follows al-Zaidi’s visit to Washington last week, where he met with US President Donald Trump.

Iranian Foreign Minister Abbas Araghchi said al-Zaidi may convey messages and viewpoints from Trump, but insists Tehran is not seeking further mediation with the US.

“Iran currently has no shortage of mediators or means to exchange messages with the United States,” Araghchi told the state-run Islamic Republic of Iran Broadcasting (IRIB).

“The primary obstacle is the ‘irrational, excessive, and hegemonic’ approach of the US,” he said, according to state media.

Netanyahu applauds Trump’s new requirement on Saudi nuclear deal

Israeli Prime Minister Benjamin Netanyahu gives a news conference in Jerusalem on June 15, 2026.

Israeli Prime Minister Benjamin Netanyahu has applauded President Donald Trump’s new requirement on the nuclear deal with Saudi Arabia.

Just hours after Trump said the Saudis would have to join the Abraham Accords in order to finalize the deal, Netanyahu’s office issued a statement saying, “Saudi Arabia’s joining of the Abraham Accords would be an historic leap forward for peace in the Middle East.”

It is Netanyahu’s first public comment about the deal – which could allow the Gulf state to enrich its own uranium without international oversight – even as other Israeli politicians called the agreement a strategic disaster. Former Defense Minister Avigdor Liberman wrote on X that a civilian nuclear program for Saudi Arabia “will end with nuclear weapons and lead to a wild arms race across the entire Middle East.”

The accords are Trump’s signature foreign policy accomplishment from his first administration that saw Israel normalize relations with the United Arab Emirates, Bahrain, and others. But Saudi Arabia has said it will only join the Abraham Accords if there is a viable path to a Palestinian state, something Netanyahu has openly rejected.

Oil tops $100 a barrel as Middle East war widens and tankers struck

Oil has topped $100 a barrel for the first time since May, as the widening conflict in the Middle East threatens a further squeeze on global supplies.

Brent crude, the global oil benchmark, jumped more than 6% Thursday to briefly touch $100.14 a barrel, before pulling back just a bit. West Texas Intermediate, the US benchmark, was up almost 5% to $90.98 a barrel.

Fears about global oil supply are resurfacing after Yemen’s Houthi rebels targeted Saudi ships in the Red Sea, threatening to cut off a crucial escape hatch for Saudi Arabia’s oil exports.

The kingdom has been sending about 4 million to 5 million barrels of oil via the Red Sea and Bab al-Mandeb strait, bypassing the Strait of Hormuz, according to analysts. That lifeline for the global oil market is now at risk, with the Houthis claiming to have struck two Saudi tankers on Thursday.

Brent has surged by around $27 a barrel this month, a gain of more than a third. It last settled above $100 on May 22, according to FactSet.

Watch the latest shipping traffic through Bab al-Mandeb Strait

Streams of tankers and cargo vessels continue to traverse the Bab al-Mandeb Strait, which connects the Red Sea and Gulf of Aden, even as Yemen’s Houthi rebels threaten to blockade the critical waterway.

Another oil chokepoint, the strait sits between Yemen and the Horn of Africa.

Here is a video showing the latest shipping traffic through the channel:

Iran fires drones toward Kuwait-Iraq border, Kuwaiti defense ministry says

Iranian forces launched a drone assault on northern Kuwait on Thursday, according to the Kuwaiti defense ministry, as Tehran escalated strikes on US-allied Gulf nations.

The attack at the Abdali border crossing with Iraq “resulted in material damage,” ministry spokesperson Major General Saud Abdulaziz said in a statement.

No one was injured or killed, the statement added, stressing the Kuwaiti armed forces’ “ongoing readiness and constant preparedness to protect the nation’s borders.”

Other Persian Gulf nations that host US military bases, including Bahrain, have come under repeated Iranian fire in recent days – after Washington escalated its assault on Iran following Tehran’s attacks on vessels in the Strait of Hormuz.

Who are the Houthis?

Members of Houthi security forces stand guard as supporters of Yemen's Houthis movement participate in a rally held to mark the 11th anniversary of the military campaign launched by the Saudi-led coalition on March 26, 2026 in Sana'a, Yemen.

Yemen’s Iran-backed Houthis represent the country’s Shia Muslim minority, the Zaidis, and are formally known as Ansar Allah – “Partisans of God.”

They emerged as an armed group in the 1990s and fought a series of rebellions against Yemen’s central government over two decades.

After the Arab Spring in 2011, they seized a northern province and later the capital Sanaa, which they still hold, along with most of Yemen’s Red Sea coastline. In the process they became part of Iran’s “Axis of Resistance” across the region, receiving weapons and missile technology.

Tehran has provided the group with sea mines, ballistic and cruise missiles, as well as unmanned aerial vehicles (UAVs, or drones), according to a 2021 report from the Center for Strategic and International Studies.

After Israel’s war with Hamas in Gaza began in October 2023, the Houthis launched missiles against Israel and began targeting shipping in the Red Sea. Israel responded with strikes on Houthi infrastructure and killed a number of senior Houthi officials.

Amid the US-Iran war, the militant group has repeatedly warned they could take action to block the Bab al-Mandeb Strait, a chokepoint at the southern end of the Red Sea. Earlier this week, the group declared a maritime blockade on Saudi ships in the strait, threatening to create a new front in the Iran war.

CNN’s Lex Harvey contributed reporting.

Trump places new condition on signed Saudi nuclear deal

President Donald Trump welcomes Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia during an arrival ceremony at the White House on November 18, 2025 in Washington, DC.

President Donald Trump has placed a new condition on a nuclear agreement with Saudi Arabia a day after formally approving it, saying the country now must join the Abraham Accords.

Trump wrote in a post on social media Thursday that the signed deal “will be approved,” but added, that it “is totally subject to Saudi Arabia joining the very respected and successful Abraham Accords.”

On Wednesday, Energy Secretary Chris Wright and his Saudi counterpart signed the agreement, which provides Saudi Arabia with a civilian nuclear program.

It has already sparked criticism from Israeli officials and is expected to draw scrutiny on Capitol Hill. CNN previously reported that the administration let the deal languish for months over concerns about the Iran war and the potential for congressional disapproval.

Trump emphasized in his post that there will be “no enrichment” of nuclear material. Saudi Arabia has previously been resistant to efforts to join the Abraham Accords, an effort started during Trump’s first term and expanded during his second to establish diplomatic ties between Israel and its neighbors in the Middle East.

It is unclear what impact Trump’s social media missive will have on the signed agreement.

CNN has reached out to the Saudi embassy for comment and the White House for additional information.

Trump says US will hold Iran responsible for future Houthi attacks in Strait of Hormuz

Vessels are anchored in the Strait of Hormuz, as seen from Musandam, Oman, June 19, 2026.

President Donald Trump said today that the United States would hold Iran responsible for any future attacks by the Iran-backed Houthis in the Strait of Hormuz, warning of “major military punishment” if the group targets ships again.

Trump’s warning comes after Yemen’s Iran-backed Houthis claimed responsibility for striking two Saudi oil tankers in the Red Sea, days after announcing a naval blockade targeting Saudi vessels.

“(If) they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves, who I am very disappointed with in that they have, until now, acted very professionally and smart,” Trump wrote in a Truth Social post.

The reported attacks sent global oil prices above $98 a barrel.

Why US oil just topped $90 for the first time since early June

The war with Iran continues to intensify and expand, and oil traders are growing more concerned about the ability to get crude out of the Middle East.

That’s why Brent crude, the international benchmark, is closing in on triple digits again. But US oil is also on the rise, topping $90 for the first time since June 8.

So what gives? Why is US oil so expensive when Middle Eastern oil is getting blocked at every turn?

Oil trades on a global market, and a shortage in one region increases demand for crude from a different region.

The United States has become the supplier of last resort during the course of the Iran war, supplying jet fuel to Europe and diesel to Australia and Asia. That has kept a floor under US crude prices — but it has lifted American gas and diesel prices even more. As refiners make more jet fuel and diesel for foreign markets, they have made less gasoline.

That’s a big reason why gas prices have bounced back sharply, rising to $4.09 overnight, according to AAA, after falling as low as $3.77 just a few weeks ago.

Residents in Iran decry “cycle of war” as US strikes ravage region

still_22831959_0_still.jpg
Residents in Iran decry “cycle of war” as US strikes ravage region
1:14 • Source: CNN
still_22831959_0_still.jpg
1:14

Yellow taxis zoomed through a bustling junction in Tehran on Thursday, as Iranians walked through the streets of the capital.

But the scenes of relative calm, in footage from Reuters, were undercut by palpable anxiety expressed by several residents after the US escalated lethal attacks along Iran’s southwestern coast and deep into parts of the north.

As a stinging war of words further undermined shaky diplomacy between US and Iranian officials, one man in the capital told Reuters the time to “sit down for talks” had passed. “I believe we have to see this through to the end and finish it,” said Mr Mahbobi, who was identified only by his last name. “Either death or life, one of those will happen, and that’s better than this cycle of war.”

Washington ramped up strikes on Iran in mid-July, after Tehran attacked vessels in the Strait of Hormuz. At least 53 people have been killed in Iran by the US assault since July 6, the Iranian health ministry reported on Wednesday.

Tehran has also hiked up attacks on US-allied nations in the region, including in Kuwait, Bahrain and Jordan – all of which accommodate US military bases.

Another resident, Shahram Mohammadi, told Reuters that, “The Arab countries must also understand that if our infrastructure is struck, theirs will certainly be struck as well.”

“We were in negotiations when (the US and Israel) struck our leader. We were in negotiations when they struck our commanders. I think around 70 to 80% of the people are now familiar with this experience,” added Mr Mohammadi.

EU says Red Sea blockade threats constitute "dangerous escalation"

Recent threats by Yemen’s Iran-backed Houthis to impose a maritime blockade on Saudi Arabia jeopardize regional stability and “constitute a dangerous escalation,” the European Union’s foreign policy chief Kaja Kallas said.

In a statement published Thursday, Kallas called on the Houthis to cease all actions that “endanger international shipping and the lives of seafarers.”

The militant group claimed to have struck two Saudi oil tankers in the Red Sea earlier Thursday following their Monday announcement of a naval blockade on Saudi ships, a move which threatens to open up a new front in the Iran war.

UK warns against all but essential travel to Kuwait and Bahrain

Britain’s Foreign Office has warned against all but essential travel to Kuwait and Bahrain, citing the “unpredictable” situation in the Middle East, as Tehran and Washington trade daily strikes.

Both Persian Gulf nations have faced repeated Iranian attacks in recent weeks amid the latest spike in regional violence. The new travel advice published Thursday comes shortly after the UK announced it had temporarily withdrawn its staff from Iran.

Another oil snafu: Insurers may ditch ships that pay Iran a toll

Boats are anchored off Oman's northern Musandam Peninsula near the Strait of Hormuz on June 27.

Insurance companies can cancel policies for ships that pay tolls to Iran or any other country to transit the Strait of Hormuz, a major trade group announced Thursday, injecting a new layer of uncertainty atop the oil market quagmire that the Iran war has unleashed.

Lloyd’s Market Association, a group representing maritime insurance underwriters, said in a newly drafted clause for shipping policies that paying a toll to Iran directly or via any of its agents is illegal. If ships pay the toll, it can void the ship’s entire insurance policy.

LMA said insurers can apply a blanket policy about tolls so agents don’t need to figure out who is ultimately getting the money in the end. That could include the United States, after President Donald Trump briefly suggested the country could also impose tolls before abandoning that plan.

But LMA’s clause is just guidance, and agents and shipping companies can draft policies as they see fit.

That could nevertheless significantly complicate an already convoluted situation in the Strait of Hormuz: Iran has fired on vessels that attempt to enter or exit the Persian Gulf by hugging the Omani coast. Iran wants ships to transit the strait close to its coast so it can register them and impose tolls.

But the United States and other countries have imposed sanctions on Iran, so doing business with the regime would violate the law, LMA said.

That leaves shipping companies with few good options — especially as the Houthis have announced a blockade of the Bab al-Mandeb strait, leaving few remaining paths for Middle Eastern oil to get to its customers.

What we know about the two Saudi tankers attacked in the Red Sea

This picture shows Saudi oil tanker Encelia at sea on July 4, 2024.

Yemen’s Iran-backed Houthis claimed early Thursday to have struck two Saudi oil tankers in the Red Sea, in what appears to be the group’s first enforcement action of its recent threat to blockade Saudi ships.

Here’s what we know about the tankers:

The Houthis, one of Iran’s principal allies in the region, identified the vessels as the Encelia and Layla. Both are Saudi-flagged, according to maritime tracking agency MarineTraffic.

The Layla (identified by its unique International Maritime Organization number 9336098) is listed as a laden crude oil tanker, while the Encelia (IMO 9240172) is identified as a laden oil products tanker, MarineTraffic said.

The vessels were struck in separate attacks approximately 70 nautical miles (around 80 miles) off the Saudi coast, maritime risk consultancy Marisks said Thursday. The Encelia sustained damage after being hit by a projectile, Marisks said, while the Layla was also “targeted.”

Satellite imagery from NASA appears to show the Encelia on fire in the Red Sea.

Satellite imagery appears to show Saudi oil tanker, Encelia, on fire after being struck in the Red Sea.

There is a risk the Houthis “may broaden their interpretation of ‘Saudi-linked shipping’ to include foreign-flagged vessels trading with Saudi ports, carrying Saudi cargoes or operating under Saudi commercial interests,” Marisk added.

The UK Maritime Trade Operations (UKMTO) center said a tanker had been struck 70 nautical miles (around 80 miles) southwest of the Saudi Arabian town of Al Shuqaiq, but it did not provide the vessel’s name.

Meanwhile, Saudi Press Agency said the Encelia was “targeted while sailing in the Red Sea,” causing “a fire on the vessel’s bow,” citing an unnamed official at the General Transport Authority. In its report, it did not comment on the Layla.

CNN’s Eleni Giokos contributed reporting.

US claims Iran is “begging” for a deal, as Tehran warns of “unlawful” threats. Catch up

Secretary of State Marco Rubio walks up the steps to his plane to depart at Ninoy Aquino International Airport in Manila, Philippines, following his visit to attend ASEAN Foreign Ministers Meeting, on Thursday.

US Secretary of State Marco Rubio insisted on Thursday that Tehran is “begging” the Trump administration for a peace agreement, after reporters pressed him on the president’s threat to destroy Iranian bridges and power plants this week.

Rubio doubled down on those comments, describing Trump’s move as “a head for an eye,” refering to Iran’s threat to take “an eye for an eye.” He further claimed that Iranian officials “haven’t come to their senses” and are “clearly not ready to make a deal.” An act of targeting civilian infrastructure could be considered a war crime.

Iran’s Foreign Ministry spokesperson, Esmaeil Baqaei, warned that Trump’s repeated threat to destroy Iranian bridges and power plants is “manifestly unlawful and criminal.”

That war of words escalated as both parties try to wrest control of shipping in the Strait of Hormuz – and now the Red Sea, opening up a new front of regional violence.

Here’s what you need to know:

  • US strikes kill two people at Iran border: Two people were killed and 11 others injured after Washington launched a salvo across southern and western Fifty-three people have been killed by US strikes on Iran since July 6, the Iranian Ministry of Health said on Thursday.
  • Iran fires on regional nations: The Iranian military launched four missiles toward Jordan early Thursday, three of which were intercepted, according to the Jordanian Armed Forces. Further east, sirens also sounded across Bahrain, the country’s interior minister said.
  • New US-Saudi deal will have safeguards, says Rubio: The Secretary of State sought to allay concerns over a fresh nuclear pact between Riyadh and Washington, telling reporters in Manila that the Gulf ally was a “strategic partner.” He insisted there will be “safeguards in place to ensure that it can’t be turned into a weapons program.”
  • Oil prices peak: The cost of Brent crude, the international benchmark, rose by 4% passing $98 a barrel early morning ET on Thursday, after the Iran-backed Houthis attacked two Saudi Arabian oil tankers in the Red Sea.

Iran foreign minister’s "eye for an eye" comment shows how Tehran will respond to attacks

Iranian Foreign Minister Abbas Araghchi arrives for a meeting in Baghdad, Iraq, on June 28.

Iran’s Foreign Minister Abbas Araghchi says Iran’s defense doctrine is an “eye for an eye” retaliation against any attack on its infrastructure. In a post on X Tuesday, he said any aggression against Iran, including its infrastructure, would compel a powerful and decisive response.

The comments came in response to threats from Washington to bomb a bridge or power plant for every ship targeted in the Strait of Hormuz, after US President Donald Trump warned of strikes on Iranian infrastructure amid the ongoing standoff over shipping through the strait.

Araghchi’s post aligns with the message being sent by Iran’s top military brass. The IRGC’s commander, Brigadier General Seyyed Majid Mousavi, said any US attack on Iranian bridges or power plants would be met with immediate retaliation, warning that it would cut electricity to US allies hosting American forces in the region.

Just about a week ago, Iran’s IRGC-linked news outlets also said that the Revolutionary Guards would “respond in kind” to any American attacks or escalations and would respond proportionally to US aggression.

Iran has long favored what it believes are calibrated, proportional responses over open-ended escalation. Its 2020 ballistic missile strikes on US forces at Iraq’s Ain al-Asad base, following the killing of General Qasem Soleimani, were widely seen as designed to inflict a symbolic, measured blow rather than trigger all-out war. They also implemented this strategy in 2024 and 2025.

US-Saudi nuclear pact could undermine Iran talks, expert warns

President Donald Trump speaks to reporters before boarding Air Force One, at Joint Base Andrews, Maryland on Wednesday.

The US-Saudi nuclear agreement could undermine US efforts to rein in Iran’s nuclear ambitions, a former Pentagon advisor has warned.

US President Donald Trump approved a nuclear deal with Saudi Arabia on Wednesday that could lead to the kingdom enriching its own fuel for civilian reactors and bypassing international nuclear watchdogs.

Any agreement to give Saudi Arabia access to nuclear technology could prove controversial, both in the US and across the Middle East, since the ability to enrich nuclear fuel could, in theory, eventually lead to the creation of nuclear weapons.

“Iran is likely to point at this deal and ask: If the US is having these conversations with Saudi Arabia, why are they imposing such standards on us,” former Pentagon advisor Jasmine El Gamal told CNN’s Polo Sandoval.

El Gamal said the US-Saudi Arabia agreement, also known as the 123 agreement, could “set a precedent,” given Washington’s ambitions of restricting Iran’s nuclear capabilities.

Both sides agreed to discuss Tehran’s nuclear program under the Memorandum of Understanding that was signed in June but later fell apart.

Oman calls for de-escalation in Red Sea region amid Houthi attacks

Oman called for de-escalation in the Red Sea region today after Yemen’s Iran-backed Houthis attacked two Saudi oil tankers in the area, as the Iran conflict widens.

The ministry expressed the need to “avoid escalation and any threats that could exacerbate the situation and endanger freedom of navigation.”

The Houthis, one of Iran’s principal allies in the region, have long warned they could take action to block the Bab al-Mandeb Strait, a chokepoint at the southern end of the Red Sea.

Earlier this week, the group declared a maritime blockade on Saudi shipping, an escalation that could further threaten global oil supplies.

Download the CNN app

Scan the QR code to download the CNN app on Google Play.

Scan the QR code to download the CNN app from Google Play.

Download the CNN app

Scan the QR code to download the CNN app from the Apple Store.

Scan the QR code to download the CNN app from the Apple Store.