Middle East Conflict Drives Oil Prices to Two-Month Peaks

Oil prices surged to two-month highs due to supply disruptions caused by ongoing conflicts in Iran and Ukraine. Brent, the global oil price benchmark, reached $105.70 per barrel on Thursday, its highest since late May. The increase is attributed to recent attacks by Yemen's Iran-aligned Houthis on Saudi shipments in the Red Sea, which have been rerouted to take longer routes.

The supply issues are further compounded by Kazakhstan's reduced oil production following suspected Ukrainian drone attacks, which halved their output from main export terminals. As a result, premiums for Middle Eastern grades have rebounded and set new highs since the partial U.S.-Iran truce earlier this year.