$100 Brent Crude as West Asia Tensions Escalate

Brent crude oil futures surpassed $100 a barrel for the first time since July 24 as tensions in West Asia intensified. The conflict between the US and Iran has been ongoing for six months, with expectations of a permanent solution waning.

The recent attack by Iran-backed Houthis on Saudi energy infrastructure further fueled concerns about oil flows from the region. The Houthi attacks set oil installations on fire, raising the possibility of a major battle extension and potentially threatening crude exports across the Red Sea.

Analysts predict that approximately 8 million to 9 million barrels per day (bpd) had flowed through the Strait of Hormuz in the week prior to the August 30 combat restart. However, more recently, this figure has dropped below 2 million bpd.

Goldman Sachs, Bank of America, and HSBC have all raised their crude price projections in recent days, reflecting growing concerns about oil supply disruptions.