Oil Prices Soar on Escalating Middle East Tensions
The global oil price has risen sharply due to escalating tensions in the Middle East. The conflict has led to a 13% increase in oil prices this week, with Brent crude futures closing at $108.95 per barrel on Thursday and US West Texas Intermediate (WTI) crude rising to $103.17 a barrel.
The price surge is attributed to increased attacks along key shipping routes in the Middle East, fueling fears of prolonged disruptions to supplies. The Strait of Hormuz remains restricted due to tanker attacks, while Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing further threats to Red Sea traffic.
Analysts warn that oil supply disruptions could lead to higher prices, with ING saying 'flows remain well below pre-war levels, underscoring how fragile the situation has become.'