Middle East Tensions Push Oil Prices Toward $150

Bernstein analysts have issued a warning that Brent crude prices could surge to $120-$150 per barrel due to ongoing crude oil supply shortages in the Middle East. The likelihood of a short-term de-escalation is very limited, according to Neil Beveridge and Brian Ho.

Currently, only about 35% of pre-conflict levels are being transported through three key chokepoints: the Strait of Hormuz, the Bab el-Mandeb Strait, and the Suez Canal. The total daily oil throughput via these chokepoints is less than 7 million barrels per day.

The suspension of operations at Saudi Arabia's East-West Pipeline after it was attacked late last week has put additional pressure on global energy supplies. The pipeline transports 4 to 5 million barrels of oil per day, equivalent to 4-5% of global supply.