Oil Crisis Deepens: Global Prices Hit $100.69 Amid Conflict-Driven Supply Chain Disruptions

The global oil crisis is escalating, with Brent crude prices reaching $100.69 per barrel on July 23, their highest close since May 22. The surge in prices is attributed to conflicts threatening three major export routes: the Strait of Hormuz, the Bab el-Mandeb strait, and the Caspian Pipeline Consortium's terminal near Novorossiysk.

The simultaneous pressure on oil supply chains is affecting not only crude availability but also refinery supplies, finished-fuel exports, tanker availability, and insurance costs. The Strait of Hormuz and Bab el-Mandeb together carry approximately a quarter of global oil supply, while the Caspian route handles about 2% of daily crude supply.

The attacks on Saudi tankers in the Red Sea have added to the pressure, with one vessel catching fire after an assault. The damage to Russian refineries has also contributed to the crisis, with Ukrainian attacks disrupting approximately a quarter of Russia's refining capacity.