US-Iran Conflict Drives Oil Prices Above $100 per Barrel

The escalating US-Iran conflict has pushed oil prices back above the psychologically important $100 per barrel mark, with Brent crude rising by 8.3% this week and reaching May highs.

A key risk for energy supplies is the Houthis' control of a major Red Sea island, which is used to transport Saudi Arabian oil during the conflict.

US oil inventories declined nearly 400,000 barrels last week, but other supply pressures are building as China returns to buying oil supplies.

The price of oil may need attacks in the Middle East to slow significantly and tanker traffic through the Red Sea to have safe passage before it falls back below $100 per barrel.