Oil Prices Near $100 Amid Middle East Conflict and Supply Concerns

Oil prices surged to near $100 per barrel on Tuesday due to renewed hostilities in the Middle East and supply concerns. The Brent crude futures price gained about 2.3%, trading at around $98.50 per barrel, while US West Texas Intermediate (WTI) crude rose by 2.7% to $94 per barrel.

The immediate catalyst for the price surge was Saudi Arabia's suspension of operations at energy facilities in its southern region following attacks by the Houthi militant group. These attacks coincided with escalated military exchanges between the United States and Iran over the past two weeks.

Goldman Sachs' oil strategy team raised their Brent and WTI price forecasts on Monday in response to the conflict and ongoing supply constraints caused by reduced oil transit through the Strait of Hormuz.