Middle East Conflict Sends Oil Prices Soaring
The conflict in the Middle East has caused oil prices to surge, with Brent crude jumping as much as 18% in just two days. The price surpassed $85 a barrel for the first time since July 2024 on Tuesday.
Saudi Arabia is exploring options to deliver more barrels from the Red Sea, but very few ships are currently transiting the Strait of Hormuz off Iran's coast due to debris from an intercepted drone causing a major fire at the United Arab Emirates oil-trading hub of Fujairah. Saudi Aramco halted operations at its Ras Tanura refinery after a drone strike on Monday.
The impact of the conflict has also rippled through freight markets, with the cost of hauling crude oil from the Middle East to China soaring to the highest level on record on Monday, according to data from the Baltic Exchange. A person familiar with the situation said the Trump administration had no immediate plan to tap the nation's emergency crude holdings.