Oil Prices Soar Amid Middle East Conflict and Supply Disruptions

Physical crude oil prices in major regions have reached two-month highs due to supply disruptions caused by conflicts in Iran and Ukraine. The global oil price benchmark, Brent, hit $105.70 per barrel on Thursday, its highest level since late May and the first time above $100 since early June.

The price surge is attributed to Yemen's Iran-aligned Houthis attacking tankers in the Red Sea, forcing Saudi shipments to reroute around Africa. The attacks followed the collapse of a preliminary U.S.-Iran peace deal and increased disruption to exports through the Strait of Hormuz.

Kazakhstan also announced that it had reduced oil production after suspected Ukrainian drone attacks forced the closure of its main export terminal for CPC Blend crude on the Black Sea.