Middle East Conflict Drives Oil Prices to Near Four-Month High
Oil prices have surged to new heights as Middle East hostilities intensify concerns over global crude supplies. Brent crude settled near $108/bbl, its highest level in nearly four months, while West Texas Intermediate climbed above $104.
The rally comes as fighting across the Middle East escalates, including US strikes on Iranian oil tankers and Houthi attacks on Saudi energy facilities that have forced some operations to halt. Iran and the US have signaled that the conflict could continue, diminishing expectations for a near-term normalization of regional energy flows.
Further attacks on fuel tankers and rhetoric suggest the conflict could extend longer than analysts had modeled, according to Rebecca Babin, senior energy trader at CIBC Private Wealth Group.