Middle East Tensions Send Brent Oil Past $100

Global oil prices surged past $100 per barrel on Friday, July 24, due to escalating tensions in the Middle East. The sharp increase in value is driven by growing concerns over disruptions in energy supply through the Red Sea and the military confrontation between the US, Israel, and Iran.

The price of Brent crude oil futures rose by 37 cents (0.37%) to $101.06 per barrel after Houthi rebels announced an attack on two Saudi oil tankers in the Red Sea. Meanwhile, West Texas Intermediate (WTI) crude oil futures remained nearly unchanged at $91.20 per barrel, the highest level since June 11.

Analysts at ING Bank warned that 'the potential supply disruptions currently facing the market are greater than ever during the war.' They pointed out that not only have oil flows through the Strait of Hormuz dried up, but there are also clear risks to Saudi oil flows from the Red Sea.

The analysts noted that further escalation in the Persian Gulf and fears of an expanding conflict threaten a significant volume of oil supplies. The strategic importance of the Bab-el-Mandeb Strait, which connects the Red Sea to the Indian Ocean, is also emphasized due to its significance as the second most important oil transport route after the Strait of Hormuz.