Middle East Tensions Spark Oil Price Surge to $100 Per Barrel
The price of Brent crude oil surpassed $100 per barrel on Wednesday for the first time since July, as tensions in the Middle East escalated. The international benchmark oil price peaked at $100.98 before easing to $100.77 at 9:58 a.m. EDT.
The Iran conflict has been intensifying over the past few days, with Yemen's Houthi rebels attacking four southern Saudi cities and oil facilities on Tuesday. The Houthis said they targeted sites belonging to Saudi Aramco in Abha, Najran, and Jizan, wounding more than 70 people and setting oil installations on fire.
The attacks have disrupted maritime traffic through the Strait of Hormuz, a key route for oil transported through the Suez Canal. According to Kpler, only six commodity vessels transited the Strait on Tuesday, compared to nine on Monday. Before the war, between 130 and 140 ships transited daily.
The US Central Command said it had 'destroyed' several Iranian tankers after Iran's Islamic Revolutionary Guard Corps attempted to strike a US Navy warship with ballistic missiles. The IRGC also claimed to have attacked two US vessels and eight oil tankers in the Gulf, but Jordan's state news agency reported that air-defense systems destroyed 18 of the 20 ballistic missiles originating from Iranian territory.