Middle East Escalation Sends Oil Prices Soaring

The price of physical crude oil has surged to two-month highs, reaching $110 per barrel in some regions. The jump is attributed to supply disruptions linked to the Iran and Ukraine wars, which have left buyers scrambling for prompt supplies from other sources.

Global oil price benchmark Brent hit $105.70 per barrel on Thursday, its highest since late May, according to LSEG data. North Sea Forties crude, priced against Brent, reached $108.77 on Friday.

The supply disruptions have led to a rerouting of some Saudi shipments via a route that circles Africa, following the collapse of a preliminary U.S.-Iran peace deal and increased disruption to exports through the Strait of Hormuz.