Brent Crude Surges Above $100 as Middle East Conflict Deepens

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London: Brent crude prices climbed above $100 a barrel on Wednesday for the first time in six weeks as escalating conflict in the Middle East raised fresh concerns about global oil supplies.

Brent has risen about 25% since early August, with the latest jump driven by Houthi attacks on Saudi energy facilities and continuing disruption to oil shipments through the Strait of Hormuz. About 10 million barrels per day of oil exports remain offline because of the conflict, according to Vortexa estimates.

The market is also facing tighter inventories and limited spare production capacity, leaving less room to absorb further supply disruptions. The US Strategic Petroleum Reserve has fallen to its lowest level since 1982, while the International Energy Agency expects global oil supply to decline by 4.3 million barrels per day this year.

A sustained rise in oil prices could push up transport and manufacturing costs, add to inflation and keep interest rates higher for longer. Shipping through the Strait of Hormuz has also slowed sharply, with only six commodity vessels passing through on Tuesday, well below the 10-day average.

Pic Credit: AFP