Brent Crude Rises Above $100 as Middle East Conflict Escalates

Brent crude oil prices crossed the $100-per-barrel mark on Wednesday, reaching the highest level since July 24 as escalating conflict in the Middle East raised concerns over disruptions to regional oil supplies.

 

Brent crude futures gained $2.15, or 2.2%, to $100.07 per barrel, while US West Texas Intermediate (WTI) rose $1.70, or 1.83%, to $94.73 per barrel by 0721 GMT.

 

Oil prices have climbed around 25% since early August as prospects for a lasting resolution to the ongoing US-Iran conflict have weakened. Recent Houthi attacks on Saudi energy facilities, which reportedly set oil installations ablaze, have added to concerns about the security of regional supply routes.

 

The attacks could also threaten crude shipments through the Red Sea, an important alternative route to the Strait of Hormuz, where oil flows have already fallen sharply amid the conflict.

 

Several major banks, including Goldman Sachs, Bank of America and HSBC, have recently raised their crude oil price forecasts amid growing supply risks.

 

According to Rystad Energy, oil flows through the Strait of Hormuz had reached around 8–9 million barrels per day before fighting resumed on August 30, but subsequently dropped below 2 million barrels per day.

 

Meanwhile, the International Energy Agency (IEA) expects global oil supply to decline by around 4.3 million barrels per day, or 4%, in 2026, despite increased production from non-OPEC producers including the US, Canada and Guyana.