Brent Crude Surges Past $100 as Middle East Tensions Escalate

The price of Brent crude oil has broken through the $100 per barrel threshold for the first time since late July, driven by escalating tensions between Iran and the US.

The conflict, which began in February, has led to a significant reduction in shipping volumes through the Strait of Hormuz, with only six commodity vessels passing through on Tuesday, down from nine a day earlier.

Rystad Energy's chief economist Claudio Galimberti estimates that flows have fallen below 2 million barrels per day, down from 8-9 million barrels per day in the week before the resumption of fighting on August 30.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that the move towards and back above $100 Brent is reflecting a market that increasingly has to change its view on how long the Middle East crisis will continue to curb supply from the region.