Middle East Tensions Send Oil Prices Soaring Above $100
Oil prices have remained above $100 per barrel as tensions in the Middle East continue to escalate. Brent futures were trading at $101.06 a barrel, up 37 cents or 0.37% from Thursday's close. This marks the fourth consecutive week of gains for Brent, with the contract expected to rise by 14.6% for the week.
The recent spike in oil prices is largely due to concerns over disrupted energy flows in the Red Sea and fears of further escalation in the U.S.-Israeli war on Iran. The Iran-aligned Houthis have declared a naval blockade on Saudi Arabia, which has been diverting its oil via pipeline to get around Iran's closure of the Strait of Hormuz.
The Bab el-Mandeb shipping route, which controls access from the Red Sea to the Indian Ocean, has seen a significant decrease in tanker traffic. According to ship-tracking data from Kpler, just one tanker crossed through the Strait on Thursday, the lowest number since May 7.