Oil surges past $100 in a first since May as Middle East conflicts rage
Summary
Oil prices rose above $100 per barrel for the first time since May due to rising conflicts in the Middle East. Attacks on Saudi oil tankers by Yemen’s Houthis and ongoing tensions between Iran and the United States have threatened key shipping routes like the Red Sea and Strait of Hormuz.Key Facts
- Brent crude oil price surpassed $100 per barrel, reaching the highest level in nearly two months.
- Yemen’s Houthi group attacked two Saudi oil tankers in the Red Sea, confirming at least one tanker caught fire.
- The Red Sea and Strait of Hormuz are vital routes for Middle Eastern oil shipments.
- Iran’s Revolutionary Guard announced control over the Strait of Hormuz, declaring it closed to tankers without their permission.
- The US military, under President Donald Trump, launched repeated strikes against Iran and threatened heavy military action against the Houthis.
- A ceasefire agreed in mid-June between Iran and the US has broken down, leading to renewed fighting around strategic waterways.
- Goldman Sachs predicts Brent oil could exceed $120 per barrel later this year if these conflicts keep disrupting shipping routes.
- Factors supporting higher oil prices include lower Middle East production, summer travel demand, and reduced releases from strategic oil reserves.
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