Brent Crude Rises Above $100 a Barrel as Middle East Conflict Escalates

Benchmark Brent crude oil futures climbed past $100 a barrel on Wednesday, breaking through the symbolic threshold for the first time since July 24, as intensifying conflict in the Middle East heightened fears over oil supplies from the region.

Brent crude futures were up $2.15, or about 2.2%, at $100.07 a barrel by 0721 GMT. U.S. West Texas Intermediate (WTI) crude rose $1.70, or 1.83%, to $94.73 a barrel.

Prices have surged roughly a quarter since early last month as hopes for a lasting resolution to the six-month-old U.S.-Iran conflict have faded. This week, Iran-backed Houthi forces in Yemen attacked Saudi energy facilities, setting oil installations ablaze and raising the prospect of a wider regional war.

The Houthi strikes threaten crude shipments through the Red Sea, a key alternative route to the Strait of Hormuz. Flows through Hormuz have been sharply restricted since the conflict began around February 28. In the week before fighting resumed on August 30, about 8–9 million barrels per day (bpd) had moved through the strait; more recently the volume has fallen below 2 million bpd, according to Rystad Energy.

A growing number of banks, including Goldman Sachs, Bank of America and HSBC, have raised their crude price forecasts in recent days amid the renewed tensions.

Oil markets remain tightly focused on developments in the Gulf and Red Sea, with further escalation risking additional supply disruptions and higher energy costs worldwide.