Brent Crude Surges Above $100 per Barrel Amid Escalating Middle East Conflict

Nigerian motorists may face higher fuel prices as Brent crude rises above $100 per barrel for the first time since July 24. The price surge is due to escalating fighting in the Middle East, which fuels concerns about further disruptions to global oil supplies.

Brent futures climbed 2.2% to $100.07 a barrel by 0721 GMT on Wednesday, while US West Texas Intermediate (WTI) crude rose 1.83% to $94.73 a barrel. Brent has gained about 25% since early August as hopes for a lasting resolution to the US-Iran conflict fade.

The latest price surge follows a sharp escalation in hostilities across the region, including attacks by Iran-backed Houthi rebels on Saudi Arabia. The Houthis launched missile and drone strikes on several Saudi cities this week, damaging energy facilities and setting oil installations ablaze. Saudi authorities said at least 73 people were wounded in the attacks.

Traders are increasingly concerned that prolonged attacks on energy infrastructure and shipping could remove more supplies from an already tight market. The International Energy Agency has warned that global oil supply could fall by 4.3 million barrels per day this year, or about 4%, despite increased production from countries including the United States, Canada, and Guyana.

Several major banks have also raised their forecasts for oil prices as the conflict intensifies. Goldman Sachs, Bank of America, and HSBC are among financial institutions that have revised their expectations higher.