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

Ole Hansen, head of commodity strategy at Saxo Bank, said that Brent crude futures have breached $100 a barrel for the first time since late July due to escalating attacks in the Middle East. The conflict has worsened energy supplies from the region.

The U.S. and Iran have been engaged in the six-month war, with Iran saying it had attacked 10 ships near the Strait of Hormuz on Wednesday. The U.S. sank five Iranian oil tankers in a sharp escalation of the conflict.

Shipping volumes through the Strait of Hormuz remain far below their prewar peak, making it key to worldwide energy trade. Tight supplies have been apparent for the bulk of the conflict, with futures prices moving closer to physical crude and fuel markets.