Middle East Conflict Drives Oil Prices to Nearly $100 per Barrel

The escalating conflict in the Middle East has sent oil prices soaring to nearly $100 per barrel, while the US 10-Year Treasury yield broke above 5% for the first time since October 2023. Market analysts point to the closure of the East-West Pipeline as a major contributor to the surge in oil prices.

The pipeline, which spans over 1,200 kilometers across the Arabian Peninsula, has been shut down due to the conflict. This has led to a tightening of global crude supply chains and a subsequent increase in oil prices.

The Brent Crude and West Texas Intermediate benchmarks both surged past $100 per barrel this month, with US diesel prices reaching an all-time high of $6.27 per gallon.