Oil Prices Surge to Nearly Four Months' High Amid Middle East Supply Threats

Global oil prices have surged to nearly four months' high of $100 a barrel due to escalating attacks on Middle Eastern shipping routes.

The Brent crude futures climbed 1% to $108.68 a barrel while U.S. West Texas Intermediate (WTI) rose to $103.45, with both benchmarks surging over 6% on Thursday and marking a weekly gain of nearly 13%, the steepest since mid-July.

Tensions escalated rapidly after Iran-aligned Houthis seized Yemen's Mocha port and threatened Red Sea transit, while Gulf shipping remains restricted due to intensified tanker attacks in the Strait of Hormuz. Strikes on Saudi energy facilities have further amplified fears of prolonged regional disruptions.

The conflict is triggering a severe global ripple effect, with U.S. diesel prices hitting a record $6 per gallon squeezed by the ongoing U.S.-Iran conflict and Ukrainian strikes on Russian refineries.