Brent Crude Surges Past $100 per Barrel Amid Middle East Tensions
The global oil market is bracing for higher prices as conflict in the Middle East escalates. Brent crude futures surged to $100.07 per barrel on Wednesday, a level not seen since July 24.
The price jump comes amid increasing tensions between the US and Iran, which have led to hopes of a lasting solution fading away. The ongoing war has already reduced oil flows through the Strait of Hormuz, with only about two million barrels a day passing through in recent times compared to eight to nine million barrels per week before the conflict intensified on August 30.
A key alternative route for crude oil shipments, the Red Sea, is also under threat from attacks by Yemen's Iran-backed Houthis. The Houthi attacks have set off fires at oil installations in Saudi Arabia and may disrupt crude oil shipments through the Red Sea.