Middle East Conflict Sends Oil Prices Soaring Past $100

Crude oil prices have broken through the $100 per barrel threshold for the first time since July, as escalating tensions in the Middle East continue to disrupt oil flows.

The latest escalation between US and Iranian forces has sent Brent crude soaring above $100 per barrel on Wednesday morning. For months, analysts had warned that a surge past this level was possible due to ongoing conflicts in the region.

Middle Eastern producers have found alternative channels to send their crude abroad, often through pipelines, but these measures are not enough to offset the losses from tankers being unable to pass through the Strait of Hormuz.

The International Energy Agency reported that 8.3 million barrels daily of oil production remained shut in across the Middle East as of July, while global oil inventories had dipped by 69 million barrels in July, adding to earlier draws.