Brent Crude Breaks $100 on Red Sea, Strait of Hormuz Supply Risks; U.S. Strategic Reserves Hit 40-Year Low

According to South Korea Investment Securities analyst Jeong Hyun-jong on July 25, Brent crude oil has broken through the $100 per barrel mark amid escalating risks in both the Strait of Hormuz and the Red Sea corridor. The Strait of Hormuz handles 25-30% of global seaborne oil transport, with 21 million barrels daily; alternative export routes via the Red Sea account for roughly 4 million barrels daily. If both passages face sustained disruption, Middle Eastern crude supplies face a critical bottleneck.

U.S. total crude inventories have fallen to 730 million barrels, representing 87% of the 2025 average, while strategic petroleum reserves (SPR) have dropped to 320 million barrels, or 78% of the average, marking the lowest SPR share of total inventories in 40 years. Analyst Jeong warned that if the dual bottleneck persists, Brent crude risks rebounding to its May peak of $114 per barrel, further threatening inflation expectations across global markets.