On July 23, 2026, international oil prices surged past $100 a barrel. The increase followed claims by Houthi rebels in Yemen that they had attacked two oil tankers in the Red Sea. This incident heightened concerns about potential disruptions to global energy supplies.

In response to these events, President Trump issued a stern warning. He stated that if the Houthis attack another ship, the U.S. would impose ‘major military punishment.’ Additionally, Trump cautioned about possible escalation involving Iran.

This report is brought to you by Nick Schifrin and Dan Sagalyn. Nick Schifrin serves as the Foreign Affairs and Defense Correspondent for PBS NewsHour and hosts ‘Compass Points.’ Dan Sagalyn contributes as the deputy senior producer for foreign affairs and defense, aiding in the program’s foreign affairs and defense segments.