Oil Prices Hit $100 as Middle East Tensions Escalate

Oil prices have surpassed $100 per barrel for the first time since July due to escalating military confrontations in the Middle East. The Brent crude price rose by 2.1% on September 9, breaching the $100 mark for the third time this year.

The latest escalation involves US strikes on Iranian tankers and Houthi attacks on Saudi Arabian cities and energy infrastructure. This has intensified concerns over global oil supplies, particularly through the Strait of Hormuz, which accounts for a significant share of world crude flows.

The International Energy Agency (IEA) projected a decline in global oil supply by 4.3 million barrels per day (bbl/d) on average in 2026, before rebounding by 8.3 million bbl/d in 2027. The IEA also reduced its third-quarter 2026 supply forecast by 1.7 million bbl/d from the previous month's estimate due to renewed hostilities and maritime disruptions.