Middle East Conflict Drives Oil Prices Above $100
Oil prices surged to multi-month highs on Friday as escalating conflict in the Middle East intensified fears of supply disruptions, sending Brent crude above US$100 per barrel.
The rally followed remarks by President Donald Trump, who warned that Washington was prepared to impose 'major military punishment' on Iran and the Houthi movement in response to any further attacks on shipping in the Red Sea.
Trump also mentioned considering a 'massive attack' on Iran. The heightened rhetoric came after Houthi militants attacked two Saudi oil tankers in the Red Sea, intensifying concerns over the security of one of the region's key export routes as disruptions to shipping through the Strait of Hormuz continue.
The deteriorating security environment has prompted Asian refiners and buyers to discuss rerouting Saudi crude cargoes through the Suez Canal and around the Cape of Good Hope to minimize supply risks.