Oil Jumps Above $100 Per Barrel as Middle East Tensions Rise
The price of oil has surged to over $100 per barrel for the first time since July as tensions in the Middle East escalate. The Brent Crude benchmark, which sets the global standard for oil prices, reached a high of $100.19 on Wednesday morning.
The increase is attributed to continued chaos in the region, with Iran-backed Houthi forces launching strikes on Saudi cities and targeting energy infrastructure in southern Saudi Arabia. The Jazan refinery, capable of producing 400,000 barrels per day, was hit, further disrupting oil supplies.
US military officials have confirmed that they destroyed five Iranian tankers carrying crude after attempts to strike a US Navy warship with ballistic missiles. Iran claimed to have attacked two American vessels and eight oil tankers in the Gulf, leading shipping crews near Kuwaiti and Bahraini ports to be warned to abandon their ships.
Oil prices have jumped by a quarter since early August as hopes for a permanent resolution to the conflict faded and fighting intensified. US President Donald Trump claimed on Tuesday that 'oil prices will drop precipitously' if the US emerges victorious in the war with Iran.