Middle East Conflict Drives Brent Crude Above $100 Barrel

Brent crude futures have surged above $100 a barrel for the first time since July 24 due to escalating attacks in the Middle East, including on tankers. This move reflects a market that is increasingly uncertain about how long the crisis will continue to curb supply from the region.

The attacks on oil tankers and facilities by Iran-backed Houthis have disrupted oil shipments via the Red Sea, which has been a key alternative route to the Strait of Hormuz. Market participants are pricing in a more prolonged conflict in the Middle East as well as the risk that the latest escalation in military strikes disrupts oil flows from the region.

Physical crude oil markets have already seen prices above $100 per barrel since September 3, according to LSEG data. This reflects the market's response to supply disruptions and buyers' need to seek alternative cargoes quickly.