Middle East Tensions Send Oil Prices Soaring Past $100
The global energy crunch has entered a more perilous phase as tensions in the Middle East escalate. Brent crude oil prices have surpassed $100 a barrel, while West Texas Intermediate futures rose to $92 a barrel.
The collapse of the ceasefire between Washington and Tehran has largely shut off the Strait of Hormuz, impacting global supplies. Meanwhile, attacks by Houthi militants in the Red Sea threaten to further hamper global energy flows.
Analysts warn that essential oil stockpiles have run dangerously thin, stripping the market of its key shock-absorbing cushion. 'It's worse than last time,' says Andy Harbourne, senior oil market analyst at Wood Mackenzie.
The International Energy Agency has released a record 290 million barrels of oil from strategic stockpiles, while the United States' Strategic Petroleum Reserve fell to around 310 million barrels last week.