Brent Crude Surges Above $100 as Middle East Conflict Escalates
Brent crude oil futures rose above $100 a barrel for the first time since July 24, reaching a six-week high as tensions in the Middle East intensify.
The price surge comes after attacks by Iran-backed Houthis on Saudi energy facilities set oil installations ablaze and threatened to disrupt crude shipments via the Red Sea.
Market participants are pricing in a prolonged conflict in the region, with some banks, including Goldman Sachs, Bank of America, and HSBC, raising their crude price forecasts in recent days.
According to Hamad Hussain, senior climate and commodities economist at Capital Economics, 'the market is trying to treat this rise in energy prices as a one-off. It's not. This is structural. It's not going away, and it's part of what I would argue as a security premium.'