Middle East Tensions Send Brent Crude Price Soaring Above $100

Brent crude prices have surpassed $100 a barrel for the first time since July 24 as tensions in the Middle East escalate. The benchmark price rose by $2.15, or 2.2%, to $100.07 a barrel on Wednesday, while U.S. West Texas Intermediate crude was up $1.70, or 1.83%, at $94.73 a barrel.

The conflict between the US and Iran has been ongoing for six months, and recent attacks by Houthi rebels on Saudi energy facilities have raised concerns about potential disruptions to oil flows from the region.

Major banks, including Goldman Sachs, Bank of America, and HSBC, have raised their crude price forecasts in response to the growing uncertainty. The International Energy Agency (IEA) expects global oil supply to fall by 4.3 million barrels per day, or about 4%, this year due to disrupted flows through key chokepoints like Hormuz and the Red Sea.

Oil flow data from Rystad Energy shows that volumes had fallen below 2 million bpd in recent weeks, down from 8-9 million bpd before the renewed fighting on August 30.