Brent Crude Holds Below $100 Amid US-Iran Conflict

Global oil benchmark Brent crude has maintained its rally this month but remains below $100 a barrel, despite recent escalation in the US-Iran conflict that disrupted Gulf exports from the Strait of Hormuz and the Red Sea.

Crude oil shipments from Middle East producers have been significantly reduced to around 11 million barrels per day (bpd), down from 18 million bpd before the Iran war began seven months ago, according to Argus.

The reduction in exports is largely offset by increased production from non-OPEC countries and alternative routes being used for Gulf exports. This has kept a lid on oil prices, which have been further capped by demand destruction and high diesel prices.