Oil Prices Soar Amid Middle East Tensions and Disrupted Shipping Routes

Oil prices surged on Friday and were poised to end the week above $100 a barrel for the first time since mid-May, as escalating tensions in the Middle East and disruptions along key shipping routes fueled concerns over global supplies.

The International Energy Agency warned of a deeper global supply shortfall, saying continued conflict in the region was delaying the recovery of crude flows and adding upward pressure on fuel prices.

Global oil production fell by 1.6 million barrels per day in August to 100.1 million bpd, with more than 10 million bpd of Gulf production remaining offline amid heightened security risks, according to the IEA's latest report.

The agency expects global supply to decline by 5.7 million bpd this year to 100.7 million bpd, and a recovery in Gulf output is now expected to be delayed until 2027, when production is projected to rebound by 8 million bpd.