Middle East Tensions Spark Oil Price Surge to $100 Barrel

The oil market is on edge as tensions escalate in the Middle East. Brent crude prices are hovering near $100 per barrel, with many expecting it to break through this key level soon.

The recent spike in violence has led to a sharp increase in risk premiums, driving up oil prices. The US carried out airstrikes on Iranian oil tankers near Kharg Island, while Iran retaliated by firing ballistic missiles towards Jordan and warning ships in the Persian Gulf of potential targeting.

Despite these developments, estimates suggest that oil flows through the Strait of Hormuz have increased to around 10 million barrels per day, roughly half of pre-war levels. This is higher than previously thought, but still far below normal levels.