Oil Prices Surge Above $107 Amid Escalating Middle East Conflict

Oil prices have surged above $107 per barrel as tensions escalate in the Middle East, with Brent crude reaching its highest levels since May.

The conflict has severely impacted oil flows through the Strait of Hormuz, with exports dropping to below 2 million barrels per day from pre-war levels of 8 to 9 million barrels per day, according to Rystad Energy and Reuters.

Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said the step-up in attacks suggests Iran and its proxies are trying to regain the initiative in the war.