Oil Jumps After Houthis Attack Two Saudi Tankers | Horizons Middle East & Africa 7/23/2026

Summary

Oil prices surge above $96 after Houthis attack two Saudi tankers, adding a Red Sea chokepoint to the Strait of Hormuz and raising fears of supply disruption. Alphabet's record AI capex lifts Asian chip stocks, especially South Korean names like SK Hynix, while Tesla's earnings raise concerns about spending efficiency. Fixed income head Amol Shitole highlights GCC fiscal surpluses from expensive oil but warns on Bahrain and Egypt. The ECB is expected to hold rates though a September hike may follow if second-round inflation materializes.

• Houthis target Saudi tankers in the Red Sea, creating a second supply chokepoint and pushing Brent toward $100.
• Alphabet raises AI capex to $200B, benefiting Asia's semiconductor supply chain and driving KOSPI up almost 4%.
• SK Hynix specifically benefits from Alphabet via 7% revenue exposure, while Japanese equipment makers also gain.
• Tesla's heavy capex on robotaxis with no clear near-term returns leaves the stock vulnerable; strategist flags it as behind in AI.
• Amol Shitole sees GCC fixed income benefiting from oil-driven fiscal surpluses, but warns Egypt and Bahrain are outliers to avoid.
• ECB likely on hold today, but a September rate hike becomes likely if oil-driven inflation passes through to services and wages.