Oil Prices Smash Through $100 Amid Middle East Tensions
Oil prices have skyrocketed past $100 per barrel as tensions escalate in the Middle East. The price jump follows news of tanker strikes in the Red Sea and a warning from President Trump of a 'massive attack' on Iran.
Yemen's Houthi rebels, backed by Iran, claimed responsibility for striking two Saudi oil tankers using drones and missiles. In response, Trump stated that he was considering a massive attack against Iran, saying 'Bigger than ever before. I am close to making a decision. We are all set for it.'
The result of these developments has been a sharp increase in Brent crude futures, which closed at $100.69 per barrel on Thursday.
However, the pressure on oil markets is not limited to the Red Sea. Ukrainian forces have also struck over 150 tankers operating in the Black Sea and the Sea of Azov, halting crude loading at the Caspian Pipeline Consortium's (CPC) Black Sea export terminal.
RBC Capital Markets' global head of commodity strategy, Helima Croft, noted that the duration of the closure remains uncertain, potentially leading to production cutbacks in Kazakhstan. Kazakhstan pumps 1.7 million barrels a day and has few alternative export routes.