Oil Prices Surge Past $100 Amid Escalating US-Iran Conflict

Global oil prices have surged to over $100 per barrel as renewed hostilities between the US and Iran, coupled with Houthi attacks in the Red Sea, have raised concerns about global energy security.

The conflict has caused a near-halt in traffic through the Strait of Hormuz, which carries roughly a quarter of the world's oil supply. The US-backed Saudi Arabia is also under attack by the Tehran-allied Houthis in the Bab el-Mandeb Strait at the mouth of the Persian Gulf.

Analysts predict further price spikes if major oil-producing hubs and supply routes continue to be disrupted. Goldman Sachs estimates Brent crude could exceed $120 a barrel in the fourth quarter, while JPMorgan calculates each additional month of disruption could add around $7-$8 per barrel to Brent prices.

The global economy is drawing down rapidly on its limited oil inventories, leaving it vulnerable to unexpected disruptions or outages. Refining margins have also surged due to supply shortages, creating a feedback loop that supports higher oil prices.