Oil Prices Spike Amid Middle East Tensions

Oil prices surged to near $108 per barrel on September 14 as tensions in the Middle East escalated. The jump of around 3% was driven by concerns over supply disruptions, with a key Saudi oil pipeline closed due to a drone strike originating from Iraq.

The closure threatens up to 4% of global oil supply, further spooking investors who saw prices rise 8% last week. Brent crude futures traded near $108 per barrel, while WTI Crude futures rose around 3% to trade near $103 per barrel.

Experts predict that unless talks in Oman produce a resolution or the pipeline is brought back online quickly, oil prices could extend their gains towards the near $120 per barrel high of early March. Goldman Sachs estimates that every additional month of disruption could add around $7 to $8 a barrel to Brent prices.