Oil Prices Soar Above $100 Amid Middle East Tensions

Oil prices are set to end the week above $100 a barrel for the first time since mid-May, despite a slight dip on Friday. Brent crude futures fell by 1.53% to $105.98 a barrel, while US West Texas Intermediate crude fell by 1.33% to $101.12 a barrel.

The benchmarks rose more than 6% yesterday and are still trading over 10% higher on a weekly basis. However, the price increase is being tempered by reports of possible new talks in the Middle East between foreign ministers and Iran to manage shipping through the Strait of Hormuz.

UBS energy analyst Giovanni Staunovo noted that some headlines of possible new talks are weighing moderately on oil prices. He also cautioned that near-term risks to the upside for oil prices remain, but expects ongoing high price volatility.