- Brent crude oil briefly topped $100 per barrel for the first time since May as increased fighting in West Asia threatens to slow the global flow of crude.
- The price for a barrel climbed 6.2% to $99.94 and briefly topped the century mark, the first time the most actively traded contract has done so in two months.
- The latest increase came after attacks on two Saudi oil tankers in the Red Sea.
- Just a few weeks ago, the price for a barrel of Brent had dropped below $72, roughly back to where it was before the conflict.
- The oil price has climbed back above $100 a barrel for the first time in two months, as a fresh escalation of the Middle East conflict threatens to compound disruption to global oil supplies.
- The oil price in April rose sharply during the conflict, but fell back below $100 in late May and had fallen to as low as $71 at the start of July amid hopes of a ceasefire in the region.
- The price has started to climb again after the US-Iran talks fell apart and fresh hostilities broke out in the Gulf.
Brent crude oil prices surged past $100 a barrel for the first time since May, climbing 6.2% to $99.94 before briefly exceeding the century mark. This spike follows recent attacks on two Saudi oil tankers in the Red Sea, raising concerns over global oil supply disruptions.123
The escalation in the Middle East, particularly involving Yemen's Houthi militia, has intensified fears that Saudi oil exports could be severely impacted. The militia claimed responsibility for the attacks, stating they targeted the tankers, the Encelia and Layla, with ballistic and cruise missiles, resulting in one vessel catching fire.
This price increase marks a significant turnaround from earlier this year when Brent crude fell below $72, reflecting a volatile market influenced by geopolitical tensions. The oil price had previously surged past $100 in March due to US-Israel actions that curtailed fossil fuel exports from the Gulf, but it dropped below that threshold in late May and even fell to $71 in July amid hopes for a ceasefire.
As the situation develops, Wall Street is bracing for potential stock declines, reflecting the broader economic implications of rising oil prices amid ongoing conflict.
“Brent crude rose 6.2% to $99.94 and briefly crossed the $100 mark for the first time in two months, following attacks on two Saudi oil tankers in the Red Sea by Iran-aligned Houthi militia. The price had fallen to $71 at the start of July amid hopes of a ceasefire, but renewed hostilities after US-Iran talks collapsed have reversed the decline.”
The Guardian
