Oil Prices Surge Above $100 as Middle East Tensions Escalate
Oil prices surged on Friday and are poised to end the week above $100 a barrel for the first time in nearly four months. Brent crude futures rose $1.05, or 1%, to $108.68 a barrel by 0045 GMT, while US West Texas Intermediate crude increased 95 cents, also 1%, to $103.45 a barrel.
The rally is attributed to escalating attacks along key shipping routes in the Middle East, which have fueled fears of prolonged disruptions to supplies. The Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing an additional threat to Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz.
Analysts warn that events are spiraling out of control and that Iran is willing to prolong the conflict. IG analyst Tony Sycamore said it is becoming increasingly likely that WTI crude will retest its $119.48 high from early March.