Oil Prices Soar Above $100 as Middle East Conflict Intensifies
Brent oil prices have topped $100 per barrel for the first time in six weeks due to escalating tensions in the Middle East. The conflict between the US and Iran has raised concerns over supply from the region, leading to a surge in oil prices.
The Brent futures price has risen by a quarter since early last month as hopes fade for a permanent resolution to the six-month-old US-Iran conflict. The latest bout of escalation has seen Iranian-backed Houthi attacks on Saudi energy facilities set oil installations ablaze, increasing the risk that disruptions could spread across the wider Gulf region.
Tamas Varga of PVM said oil investors are expressing their view about the impact of the latest bout of escalation in an 'unambiguous way.' They are voting with their dollar, and this vote indicates that unless the Strait of Hormuz re-opens and oil starts flowing again uninterrupted, supply will not be aligned with demand in the foreseeable future.