Brent Crude Surges Above $100 as Middle East Tensions Escalate

Oil prices surged on Wednesday as Brent crude futures closed above $100 per barrel for the first time since late May. The move reflects growing concerns about supply disruptions due to escalating tensions in the Middle East. On Tuesday, Iran attacked 10 ships near the Strait of Hormuz, while the US sank five Iranian oil tankers in a sharp escalation of the six-month war.

Shipping volumes through the strait remain far below pre-war levels, with only six vessels passing through on Tuesday, down from nine a day earlier. The attacks have raised concerns about attempting to use the strait, which is responsible for transiting one-fifth of the world's oil and gas supply.

Futures prices are moving closer to physical crude markets, where tight supplies have been apparent since the war began on February 28. Brent has surged as high as $126.41 per barrel, but only briefly touched $100 in late July. The US Energy Information Administration raised its oil price forecasts for this year and next, citing rapidly falling global stockpiles under pressure from Middle Eastern supply losses.