Commodities
Middle East Tensions Send Global Crude Prices Soaring
The global crude market is bracing for potential supply disruptions as tensions in the Middle East escalate. According to Bernstein analysts, Brent crude prices could surge to $150 per barrel amid persistent Middle East supply disruptions.
The Strait of Hormuz, Bab el-Mandeb Strait, and Suez Canal are all under pressure, with oil flows through these key chokepoints plunging 65%. The combined oil flows have dropped to less than 7 million barrels per day, equivalent to just 35% of the pre-conflict level.
The Saudi East-West Pipeline was forced into precautionary shutdown after being attacked late last week. This pipeline transports approximately 4-5 million barrels per day, leaving a potential supply gap of around 4 million barrels per day.