Oil Prices Spike to $107 Amid Escalating Middle East Tensions
Oil prices surged to $107 per barrel on Thursday amid escalating tensions in the Middle East. The global benchmark Brent oil saw a significant increase, marking its highest level since May.
The rise in oil prices is attributed to renewed fighting between Iran and the US, as well as conflicts in Yemen. The Iranian government has stated it will not back down from an American naval blockade, while the Houthis in Yemen target Saudi Arabian assets.
Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, noted that crude prices are trading at their highest levels since May due to the escalation and duration of geopolitical risk. Trend-following commodity trading advisers have also flipped to maximum long on Brent oil, suggesting they've exhausted buying capacity for this session.
Brent oil is up over 70% this year, although it remains below its wartime peak of $126 per barrel reached in April.