Brent Surges to Two-Month High Amid Middle East Supply Disruptions

The global oil price benchmark, Brent, has surged to its highest since late May, breaching US$100 per barrel for the first time since early June. According to LSEG data, Brent hit US$105.70 on Thursday.

The price hike is largely attributed to supply disruptions caused by the Iran and Ukraine wars. The conflict in the Middle East has led to a rerouting of Saudi shipments via a route that circles Africa after Yemen's Iran-aligned Houthis attacked tankers in the Red Sea this week.

Kazakhstan also 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, one source said.