Brent Surges Past $100 as Middle East Tensions Escalate

Physical oil prices have surged to two-month highs, with some cargoes nearing $110 per barrel. The increase is attributed to supply disruptions linked to the Iran and Ukraine wars, which have left buyers scrambling for prompt supplies from other sources.

The global oil price benchmark dated Brent hit $105.70 per barrel on Thursday, its highest since late May, breaching $100 for the first time since early June. North Sea Forties crude, priced against Brent, reached $108.77 on Friday.

Yemen's Iran-aligned Houthis attacked tankers in the Red Sea this week, triggering a rerouting of some Saudi shipments via a route that circles Africa. The collapse of a preliminary U.S.-Iran peace deal and increased disruption to exports through the Strait of Hormuz have also contributed to the supply disruptions.

Kazakhstan reduced oil production after suspected Ukrainian drone attacks forced its main export terminal for CPC Blend crude on the Black Sea to close. Kazakh crude production has halved to around 406,000 barrels per day.