Brent Oil Price Surges Near $100 on Middle East Escalation
The Brent oil price has reached a new multi-week high following fresh escalation in the Middle East, threatening to disrupt the supply route through the Strait of Hormuz.
The price neared the psychological barrier of $100 per barrel after the Houthis in Yemen, backed by Iran, attacked energy facilities in Saudi Arabia. This increases the risk of spreading the conflict across the region and further boosts uncertainty.
The break above last week's congestion signaled continuation of the bull-leg from $84.58 (Aug 26 higher low), part of a larger rally from $78.10 (Aug 5 low). The price exposed key $100 barrier, which could have a strong psychological impact on markets.
Bullish daily studies contribute to favorable fundamentals, although headwinds at the $100 zone should be expected due to resistance and overbought conditions on the daily chart.