Brent Crude Surges Past $100 as Middle East Conflict Escalates

Brent crude oil futures rose to over $100 per barrel on Wednesday, reaching its highest price in more than six weeks amid growing concerns about oil flows from the Middle East.

The price hike was driven by intensifying conflict in the region, with attacks by Houthis on Saudi energy facilities threatening a significant expansion of the conflict and disrupting crude shipments via the Red Sea.

Market participants are pricing in a prolonged conflict in the Middle East, according to Hamad Hussain, senior climate and commodities economist at Capital Economics. The key risk is whether recent attacks on oil tankers will lead to fewer ship-to-ship transfers taking place in the Gulf of Oman.

Several major banks have raised their crude price forecasts in recent days, with Goldman Sachs among them.