$100 Oil Prices Reach Six-Week High Amid Escalating US-Iran Tensions
Oil prices have surged above $100 per barrel for the first time in six weeks as tensions between the US and Iran continue to escalate. The Brent crude benchmark has gained about 25% since early last month, fueled by hopes of a permanent resolution to the conflict fading.
The recent attacks on Saudi energy facilities by Iranian-backed Houthi forces have raised concerns over wider disruptions in the Gulf region. According to oil broker PVM, investors are 'voting with their dollar' and signaling that supply will not meet demand unless the Strait of Hormuz re-opens and oil flows uninterrupted.
Total global oil inventories remain fairly comfortable, but some supplies are already committed or held in countries with limited public information. Around 10 million barrels per day of oil exports remain missing due to the Iran war, equivalent to roughly 10% of world demand.