Global Oil Prices Climb Toward $100 Amid Fresh Middle East Strikes

Oil prices rose for the fourth consecutive session on Wednesday, gaining more than $1 in early trade after renewed attacks across the Middle East heightened concerns over potential supply disruptions.

Brent crude futures climbed 1.4 percent to $99.33 a barrel, while US West Texas Intermediate crude rose by the same margin to $94.34 a barrel. Brent prices have surged roughly 25 percent since early August as hopes for a lasting resolution to the six-month-old conflict have faded and fighting has flared up once again, pushing prices closer to the closely watched $100-a-barrel threshold.

Tensions escalated further Tuesday when Iranian-backed Houthi forces in Yemen launched strikes on several Saudi cities, drawing another US ally deeper into the conflict. US forces struck multiple Iranian oil tankers, while Iran targeted a US base in Jordan in response.

“Recent developments only reinforce the view that we are still some way from a restart in (peace) talks. In the meantime, the market is likely to continue to price in a sizeable risk premium,” analysts at ING said in a note.

The latest round of attacks threatens to deepen disruptions to Middle East oil supplies, which are already under strain from strikes on regional energy infrastructure and critical shipping routes. While Saudi Arabia has redirected some of its exports away from the Strait of Hormuz, analysts warn that any sustained attacks on the kingdom itself could further complicate efforts to keep crude flowing to global markets.

“Iran’s attacks on Saudi energy facilities and the subsequent destruction of five Iranian tankers raised concerns about another prolonged disruption to oil supplies,” analysts at OCBC said in a separate note.

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