Oil Prices Surge Towards $100 Amid Escalating Middle East Tensions
Oil prices are on track to end the week above $100 for the first time in nearly four months, driven by concerns over supply disruptions in the Middle East.
The Brent crude futures price rose $1.05, or 1%, to $108.68 a barrel by 0045 GMT, while US West Texas Intermediate crude rose 95 cents, also 1%, to $103.45 a barrel.
The recent attacks on key shipping routes in the Middle East have fueled fears of prolonged supply disruptions, with Iran-aligned Houthis seizing control of Yemen's port of Mocha and Gulf traffic remaining restricted through the Strait of Hormuz.
Analysts warn that events are spiraling out of control, with Iran willing to stretch the conflict as wide and long as possible. Tony Sycamore from IG said 'With events spiralling and Iran showing it is willing to stretch this conflict as wide and as long as it can, it is becoming increasingly likely that WTI crude will retest the $119.48 high from early March.'
The US national average price of diesel surpassed $6 a gallon for the first time ever on Thursday, according to GasBuddy.