Oil Prices Soar to $105 a Barrel as Middle East Tensions Escalate

Oil prices jumped 4% on Thursday, hitting $105 a barrel as attacks on shipping in the Middle East escalated.

Brent crude futures rose by $4.05 to $105.26 a barrel at 1215 GMT, while U.S. oil topped $100 a barrel for the first time since May, reaching $100.04 with a rise of $3.99 or 4.15%.

The recent surge in prices has seen Brent increase by more than 30% from its lows in early August, as concerns about supply disruptions persist.

PVM analyst John Evans noted that the conflict will likely last longer than anticipated, and if oil supply and exports are diminished, the oil balance will remain tight and prices elevated.