Oil Prices Surge Near $100 Per Barrel Amid Middle East Tensions
The price of oil has reached nearly $100 per barrel for the first time in two months due to escalating tensions in the Middle East and a global supply deficit. Brent crude futures rose 2.3% to trade near $98.50 per barrel, while US benchmark WTI crude futures increased 2.7% to $94 per barrel.
Goldman Sachs' oil strategy desk raised its price targets for both benchmarks on Monday, predicting that international Brent and US WTI futures will trade at $85 and $80 per barrel respectively. The bank's head of oil research, Daan Struyven, led the analysis.
The conflict in Yemen has intensified with Saudi Arabia responding to Houthi attacks with airstrikes, wounding dozens. The war has already cost U.S. consumers over $100 billion in higher energy prices, with an additional $1 million added every two minutes, according to Brown University estimates.