Commodities
Middle East Tensions Push Oil Prices Above $100
Oil prices surged above $100 per barrel on Wednesday due to ongoing hostilities in the Middle East. The price of Brent crude oil, a global benchmark, rose by 2.83% to $100.69 per barrel, its highest level since July.
The conflict between the US and Iran, along with continuing attacks by Tehran-backed Houthis in Saudi Arabia, has heightened concerns about oil flows. This has led market participants to price in a more prolonged conflict and disrupted oil shipments from the region.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that 'the move towards and back above $100 Brent is reflecting a market that increasingly has to change its view on how long the Middle East crisis will continue to curb supply from the region.'