$120 Oil Prices Loom as Middle East Conflict Escalates
Crude oil prices could top $120 per barrel of Brent crude by year-end if the conflict in the Middle East continues, according to RBC Capital Markets' analyst Helima Croft. She warned that maritime traffic through the Bab el-Mandeb is gravely imperiled due to Houthi advances.
The Yemeni Houthis have taken control of the Red Sea port of Mokha, making it possible to launch more direct attacks on Saudi energy infrastructure and tankers in the Red Sea. This escalation adds to the tensions in the Strait of Hormuz, which has already pushed Brent crude and WTI over $100 per barrel.
Brent crude almost touched $110 per barrel earlier today, according to Reuters. The latest oil price rally has prompted a surge in bond yields as inflation fears ran high, prompting investors to prepare for interest rate hikes by central banks in key markets.