Oil prices approached the $100 mark as escalating attacks across the Middle East increased supply risks
Brent oil prices approached $100 per barrel on Wednesday for the first time since July, as escalating attacks across the Middle East fueled concerns about disruptions in oil shipments from the region.
Brent crude futures rose 1.3% to $99.22 a barrel at GMT 0614, while WTI crude oil rose 1.2% to $94.13.
Brent oil prices have risen by a quarter since the beginning of August as hopes for a permanent solution to the six-month war fade and hostilities flare up again.
The war in the Middle East intensified on Tuesday as Iran-backed Houthis in Yemen launched attacks on various Saudi cities, drawing the Saudis into the conflict.
US forces hit several Iranian oil tankers; Iran, on the other hand, targeted a US base in Jordan and attacked various ships.
As Brent oil approaches the psychologically critical level of $100 per barrel, the upward trend in crude oil markets is getting stronger.
The latest attacks risk deepening disruptions to Middle East oil supplies, which have been under pressure for six months due to attacks on regional energy infrastructure and key shipping routes.
Saudi Arabia's shifting of some export routes outside the Strait of Hormuz and the kingdom's efforts to maintain the flow of crude oil to global markets draw the reaction of Iran and its allies.
Iran's attacks on Saudi energy facilities and the subsequent destruction of five Iranian tankers have raised concerns about another prolonged disruption in oil supplies.
Analysts also noted that rising oil prices are fueling inflation concerns, especially in Asia, as many economies are heavily dependent on imported energy.
The Brent oil price of $100 should not be simply reduced to a psychological threshold; This is a warning level for the overall economy.
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