Middle East Conflict Sends Brent Crude Prices Soaring Past $100
Brent crude oil futures rose above $100 a barrel on Wednesday, surpassing a key psychological barrier as tensions in the Middle East escalate. The rise comes despite hopes for a permanent resolution to the six-month-old US-Iran conflict.
The Houthi attacks on Saudi energy facilities have raised concerns about oil shipments via the Red Sea, which has been an alternative route to the Strait of Hormuz. Since February 28, crude flows through Hormuz have been severely curtailed due to the Iran war.
A growing number of banks, including Goldman Sachs, Bank of America, and HSBC, have raised their crude price forecasts in recent days. The International Energy Agency predicted global oil supply will fall this year by 4.3 million bpd, or about 4%, last month.