Oil Prices Surge Past $100 Amid Middle East Tensions
Oil prices surged to over $100 per barrel as tensions in the Middle East escalate. Brent crude futures rose $2.15, or 2.2%, to $100.07 a barrel by 0721 GMT on Wednesday, while US West Texas Intermediate gained $1.70, or 1.83%, to $94.73 a barrel.
The sharp rally in oil prices comes as prospects for a lasting settlement to the six-month US-Iran conflict weaken. The conflict has raised fears that it could spread further across the region and disrupt oil supplies.
Claudio Galimberti, Chief Economist at Rystad Energy, noted that oil flows through the Strait of Hormuz have fallen significantly since the Iran war began on February 28. Before fighting resumed on August 30, between eight million and nine million barrels of oil per day were transported through the waterway.
However, flows have since dropped to below two million barrels per day, highlighting the potential impact of the conflict on global energy markets.