Oil Prices Surge Above $100 Per Barrel Amid Ongoing Conflict

Brent crude oil has surpassed $100 per barrel for the first time in three months following a strike on Saudi Arabian oil facilities by Iran-backed Houthi fighters. The benchmark price reached $100.03.

The attack, which also targeted four other cities in Saudi Arabia, led to fires at Saudi Aramco sites and wounded 73 people, including women and children. This escalation has pushed oil prices up roughly $5 since last week's report of renewed fighting.

Goldman Sachs has raised its Brent forecast by $5 to $85 for December and $80 for 2027, with the possibility of a path above $120 if Gulf output remains below pre-war levels. The current shortage is particularly acute, with Dubai and Oman trading between $104 and $105 per barrel.

The Hormuz standoff shows little sign of clearing, with Iran answering new US proposals with conditions passed through intermediaries. Energy prices are already driving US inflation, with consumer prices rising 3.4% in the year to July, and gasoline climbing 24.6%. The wider energy index increased by 14.7%, while core inflation sat at 2.5%.