Brent Crude Jumps Above $100 as Middle East Tensions Escalate
Brent crude oil futures have broken above the $100-per-barrel threshold for the first time since July 24, amid escalating tensions in the Middle East. The price rise was driven by a surge in attacks on tankers in the region, including Iran's claim to have struck 10 ships near the Strait of Hormuz.
The escalation of the conflict has led to concerns about energy supplies from the region, with shipping volumes through the Strait of Hormuz remaining far below their pre-war peak. The strait is responsible for transporting around one-fifth of the world's oil and gas supply, making it a crucial artery for global energy trade.
Experts say that the recent attacks have changed the market's view on how long the Middle East crisis will continue to curb supply from the region. Ole Hansen, head of commodity strategy at Saxo Bank, noted that futures prices are moving closer to physical crude and fuel markets, where tight supplies have been apparent for most of the conflict.