Brent Crude Surges Past $100 a Barrel Amid Escalating Middle East Conflict
Brent crude oil futures have risen above $100 a barrel for the first time since July 24, reaching a more than six-week high as concerns about oil flows from the Middle East intensify.
The conflict between the US and Iran has been ongoing for six months, with Brent crude prices surging by a quarter since early last month. The price has risen to $99.93 a barrel, after earlier touching $100.19.
The recent attacks by Iran-backed Houthis on Saudi energy facilities have threatened oil shipments via the Red Sea, which has been a key alternative route to the Strait of Hormuz. Supply risks are mounting as market participants price in a more prolonged conflict and disruptions to oil flows.
Hamad Hussain, senior climate and commodities economist at Capital Economics, said: 'Market participants appear to be pricing in a more prolonged conflict in the Middle East as well as the risk that the latest escalation in military strikes disrupts oil flows from the Middle East.'