Brent Oil Prices Soar Above $100 Amid Escalating Tensions
Brent oil prices remain above $100 per barrel, poised for a fourth consecutive week of gains. The uptrend is driven by concerns over disrupted energy flows in the Red Sea and escalating tensions between the US and Iran.
The potential supply disruptions facing the market are larger than at any time during the war, according to ING analysts. Oil flows through the Strait of Hormuz have effectively dried up, with only one tanker crossing through on Thursday, the lowest since May 7.
The Bab el-Mandeb shipping route, which controls access from the Red Sea to the Indian Ocean, is also at risk. Kazakhstan's energy ministry announced that oil companies temporarily cut back production after suspected Ukrainian drone attacks forced the country's main Black Sea export terminal to close.