$100 Brent Crude: Middle East Conflict Stokes Oil Supply Fears

Brent crude oil prices have breached the $100 threshold for the first time since July 24, hitting a more than six-week high as conflict in the Middle East intensifies.

The benchmark Brent crude futures rose by $2.01, or 2.05%, to $99.93 a barrel on Wednesday, while US West Texas Intermediate crude was up $1.49, or 1.60%, at $94.52 a barrel.

Hopes for a permanent resolution to the six-month-old US-Iran conflict have faded, leading to a surge in Brent prices since early last month. They've risen by a quarter during this period, and Brent has even reached as high as $126.41 a barrel on April 30.

The latest escalation of military strikes threatens oil flows from the Middle East, with attacks by Iran-backed Houthis on Saudi energy facilities setting oil installations ablaze. This has raised concerns about crude shipments via the Red Sea and the disruption to oil flows through the Strait of Hormuz, where oil volumes have been severely curtailed since February 28.