Oil Prices Soar Above $99 as Middle East Tensions Escalate

Oil prices have surged above $99 per barrel, reaching their highest level in three months. The increase is attributed to Houthi attacks on Saudi energy infrastructure and US strikes on Iranian oil tankers, which have heightened tensions in the Middle East.

The situation has also been exacerbated by Israeli-Lebanese tensions flaring up again, with President Trump threatening a trade embargo on countries running surpluses against the US unless the Federal Reserve cuts its policy rate. Iran has announced plans to establish a new maritime exclusion zone in the Gulf, expanding it to the blockade perimeter of the US Navy.

Saudi Aramco has delayed some September oil cargoes to European buyers due to Houthi missile strikes in the Red Sea. Meanwhile, Qatar's first LNG cargo since July successfully transited the Strait of Hormuz, signaling a tentative recovery in exports from a supplier that typically accounts for around 20% of global LNG trade.