Oil Prices Surge Past $100 Amid Escalating Middle East Conflict

Oil prices have surged past $100 per barrel for the first time since July 24 as escalating conflict in the Middle East fuels worries about energy-driven inflation and sends global stocks tumbling.

The Brent crude futures price rose by 2.94% to $100.80 a barrel, while U.S. West Texas Intermediate crude increased by 2.76% to $95.60 per barrel at 1210 GMT on Wednesday.

Claudio Galimberti, chief economist at Rystad Energy, noted that roughly 8 million to 9 million barrels of oil per day had flowed through the Strait of Hormuz in the week before a resumption of fighting on August 30, but more recently flows have fallen below 2 million bpd.

'The key risk is whether recent attacks on oil tankers lead to fewer ship-to-ship transfers taking place in the Gulf of Oman,' said Hamad Hussain, senior climate and commodities economist at Capital Economics.