Oil prices rise above $100 a barrel for first time since July as Iran war escalates
- Benchmark Brent crude futures rose past $100 a barrel on Wednesday, breaching the symbolic barrier for the first time since July 24 as intensifying conflict in the Middle East fuelled growing concern about oil flows from the region.
- Hopes for a permanent resolution to the six-month-old United States-Iran conflict have faded since early last month, driving Brent prices up by a quarter as Iran-backed Houthis attacked Saudi energy facilities this week.
- Data from Rystad Energy's Chief Economist Claudio Galimberti shows oil flows through the Strait of Hormuz fell below 2 million bpd recently, down from roughly 8 million to 9 million bpd before fighting resumed on August 30.
- Goldman Sachs, Bank of America and HSBC have raised their crude price forecasts in recent days, reflecting market concerns over tightening global supply amid the escalating regional conflict.
- The International Energy Agency expects global oil supply to fall by 4.3 million bpd, or about 4%, this year, while The Houthi attacks threaten Red Sea shipments, a key alternative to the Strait of Hormuz.
224 Articles
224 Articles
The oil price has risen to more than $100 per barrel in the morning because of the further military escalation on the Persian Gulf. This is because of the concern about supply interruptions from the Middle East.
The Brent oil barrel reached $100 on Wednesday for the first time since the end of July, after new American and Iranian strikes targeting oil tankers in the Middle East.
This is a first since the end of July. On Wednesday morning, the price of the Brent barrel of the North Sea briefly reached a higher at $100.19.
Against the backdrop of tensions that seem to rise in the Middle East, oil prices continue to rise, and Wednesday, the barrel of Brent oil exceeded the symbolic threshold of $100 for the first time in July.
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