Oil Prices Soar on Ongoing Middle East Tensions

Brent crude oil prices jumped 8% for the week ending September 4, its strongest weekly gain since July. The price of a barrel of Brent crude hit $96.28 on Friday, up from $95.73 earlier in the day. This increase comes as the global energy market responds to ongoing tensions in the Middle East.

The war in the region has led to increased concerns about oil shipments and prices. U.S. strikes on Iran have been followed by Iranian retaliatory strikes on bases in the area, as well as attacks on ships in the Strait of Hormuz. This has raised fears that liquefied natural gas shipments from Gulf states to Europe could be disrupted.

The impact is already being felt in Europe, where gas prices have risen for four consecutive weeks. The price of gas on the Dutch TTF exchange reached €72 per megawatt hour, up more than 7% for the week. This comes as Europe heads into the heating season with lower-than-usual stockpiles.