Middle East War Sends Oil Prices Soaring Above $100
Oil prices have surged above $100 per barrel due to ongoing supply disruptions caused by the Middle East war. The Brent crude futures price reached $103.88 a barrel, while U.S. West Texas Intermediate crude fell to $99.15 a barrel.
The price increase is attributed to attacks along key Middle East shipping routes, which have stoked fears of prolonged supply disruption. According to preliminary ship-tracking data, vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, well below the 10-day average of 15.
The strait handles about one-fifth of global daily oil and liquefied natural gas supplies. Iran's Islamic Revolutionary Guard Corps has stated that it will escalate its response to any further attacks.
Global oil supply and demand will fall further than previously thought this year, the International Energy Agency said. The agency cited a lack of progress in ending the Iran war as the reason for the delay in normal Middle East flows into 2027.