Middle East Conflict Drives Brent Crude Past $100 per Barrel

Brent crude futures have surged past $100 per barrel for the first time since late May as tensions between the US and Iran escalate. The conflict has disrupted energy supplies from the Middle East, leading to tighter supplies in the market.

The price of Brent crude has risen by 3.4% to settle at $101.21 a barrel, while US West Texas Intermediate crude increased by 3.25% to reach $96.05 a barrel. This is the highest closing price for both benchmarks since May 22.

Ole Hansen, head of commodity strategy at Saxo Bank, said that the market's view on how long the Middle East crisis will continue to curb supply from the region has changed. Futures prices are moving closer to physical crude and fuel markets, where tight supplies have been a reality for most of the conflict.

The attacks by Iran on tankers in the Strait of Hormuz have raised concerns about attempts to use this critical artery for energy trade. Shipping volumes through the strait remain below their pre-war peak, with only six commodity vessels passing through it on Tuesday, down from nine a day earlier.