Brent Crude Surges Above $107 Amid Middle East Tensions
New Delhi, September 14 - Brent crude oil prices surged above $107 a barrel on Monday amid escalating tensions in the Middle East. The sharp increase comes as Houthi forces seized key ports, disrupting global energy supplies. Brent for November delivery rose 3.20% to $107.82 a barrel, while US benchmark West Texas Intermediate for October gained 3.20% to $103.2.
The recent surge in oil prices follows reports of drone attacks and a merchant vessel being struck in the Strait of Hormuz on Sunday. Iran has tightened control over the strait, requiring vessels to seek permission and considering service fees for non-compliant ships. The United States also bombed the Iranian coastline to challenge Iranian control.
Saudi Arabia's oil production has declined by 23% from July levels, with the country producing 6.2 million barrels per day in August. Brent prices have risen over 30% since early August, when efforts to secure a permanent agreement between the US and Iran failed to materialise.