Brent Crude Holds Below $100 as Middle East Tensions Escalate

Despite escalating tensions between the US and Iran, Brent crude oil prices remain below $100 a barrel. The Strait of Hormuz, a critical shipping route for Middle Eastern oil exports, has seen its daily flow decrease to around 4-5 million barrels per day, down from 18 million bpd before the conflict began seven months ago.

Gulf producers have managed to find alternative routes and continue sending cargoes outside of Hormuz. Saudi Aramco resumed loadings from its Ras Tanura port in August, while exports from Iraq rebounded to around 2.34 million bpd in the same month.

However, Iran's oil exports have plummeted due to US sanctions, leading to a significant shortfall in global supplies. Non-OPEC producers such as the US, Canada, and Guyana are expected to increase output by 1.4 million bpd this year, partly filling the gap.