Brent Crude Tops $100 as Middle East Conflict Intensifies

Brent crude oil prices have broken through the $100 barrier for the first time since July 24 as tensions in the Middle East escalate. The benchmark price rose by 2.2% to $100.07 a barrel, while US West Texas Intermediate crude increased by 1.83% to $94.73 a barrel.

The surge in prices comes as Iran-backed Houthis attack Saudi energy facilities, threatening oil shipments via the Red Sea and potentially expanding the conflict. The attacks have led several major banks, including Goldman Sachs, Bank of America, and HSBC, to raise their crude price forecasts.

Roughly 8-9 million barrels per day (bpd) were flowing through the Strait of Hormuz in the week before fighting resumed on August 30, but this has since fallen below 2 million bpd. Global oil supply is expected to fall by 4.3 million bpd, or about 4%, this year, according to the International Energy Agency.