Middle East Tensions Send Oil Prices Soaring
Oil prices have surged due to escalating tensions in the Middle East, rising by over $1 per barrel at the start of trading on Wednesday, September 9.
The price of Brent futures rose 1.4% to $99.33 per barrel, while West Texas Intermediate (WTI) crude also increased by 1.4% to $94.34 per barrel.
This marks a quarter increase in Brent prices since the beginning of August and brings the price rapidly approaching the psychological threshold of $100 per barrel.
Analysts believe that the recent wave of attacks may continue to affect oil prices, with ING analysts stating, 'Recent events only reinforce the view that we are still far from resuming peace talks. Meanwhile, the market will likely continue to factor in a significant risk premium into prices.'
The new attacks pose the risk of further reductions in oil supplies from the Middle East, as regional oil exports are already hampered by strikes on energy infrastructure and key maritime routes.