Middle East Tensions Drive Oil Prices Above $100 Per Barrel
Oil prices have surged above $100 per barrel as hostilities in the Middle East escalate. The price of West Texas Intermediate (WTI) rose to over $104 a barrel after increasing by almost 7% in the previous session.
The Brent crude benchmark settled near $108, its highest level in nearly four months. This comes amid an ongoing conflict between Iran and the US, with little sign of a ceasefire or return to normal energy flows in the region.
Fighting has intensified over the past two weeks, including US strikes on Iranian oil tankers, ballistic missile attacks on Jordan, and Houthi assaults on Saudi energy facilities that have forced some operations to halt. Additionally, China's recent pickup in crude purchases has tightened the oil market.
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said 'Further attacks on fuel tankers and rhetoric suggest the conflict could extend longer than analysts had modeled.'