Oil Prices Surge Past $100 Amid Ongoing Supply Disruptions

Oil prices have surpassed $100 per barrel for the first time since late May as supply disruptions worsen. Brent futures rose by $6.59, or 7%, to reach $100.66 a barrel at 12:58pm ET (1658 GMT), while US West Texas Intermediate crude increased by $5.45, or 6.3%, to $92.28.

The global crude oil benchmark has risen nearly 40% this month, with the recent attack on two Saudi oil tankers in the Red Sea being a significant contributor to the price surge. Tim Snyder, chief economist at Matador Economics, stated that 'the (Saudi tankers) attack has sent world crude oil prices higher and into a higher gear as the ramifications of yet another chokepoint for crude oil trade originating from the Middle East is constricting trade.'

Goldman Sachs predicts that Brent might exceed $120 a barrel in the fourth quarter if the Strait of Hormuz remains disrupted through 2027, with further upside if the Bab el-Mandeb Strait and Suez Canal also suffer persistent disruption.