Crude Oil Prices Soar Amid Middle East Conflicts and Ukraine Disruptions

Physical crude oil prices have risen to two-month highs amid supply disruptions linked to conflicts in Iran and Ukraine. Dated Brent, the global oil price benchmark used to price over 60% of the world's physical crude cargoes, reached $105.70 per barrel on Thursday, its highest level since late May and the first time it crossed $100 since early June.

The rise in prices is attributed to supply disruptions caused by conflicts in Iran and Ukraine. Yemen's Iran-aligned Houthis attacked tankers in the Red Sea this week, forcing some Saudi shipments to reroute around Africa. Kazakhstan announced Thursday that it had reduced oil production after suspected Ukrainian drone attacks forced the closure of its main export terminal for CPC Blend crude on the Black Sea.

The spot premiums for Middle East benchmark Dubai and Oman's premium also climbed to $12.74 per barrel and $12.62, respectively, their highest levels since the end of May. The collapse of a preliminary U.S.-Iran peace deal has increased disruption to exports through the Strait of Hormuz.