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Oil Prices Rise Above $100 As Iran War Escalates

Prices have risen roughly 25% as hopes for a lasting resolution to the six-month-old conflict have faded.

,   and  TIPP Staff
2 min read
Oil prices spiked after officials said U.S. military destroyed Iranian tankers. Pic via(@USATODAY)

Brent crude prices rose above $100 a barrel on Wednesday for the first time since July 24 as the escalating Iran conflict heightened concerns over global oil supplies.

Prices have risen roughly 25% as hopes for a lasting resolution to the six-month-old conflict have faded.

Oil flows through the Strait of Hormuz, a crucial energy route, have recently fallen below 2 million barrels per day, compared with an estimated 8 million to 9 million barrels per day before fighting resumed on August 30, according to Rystad Energy.

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The supply concerns have prompted major banks, including Goldman Sachs, Bank of America and HSBC, to raise their crude price forecasts. The International Energy Agency expects global oil supply to decline by about 4.3 million barrels per day this year, or roughly 4%.

Meanwhile, attacks by Iran-backed Houthis on Saudi energy facilities and threats to Red Sea shipping are adding further pressure to global energy markets and raising concerns about disruptions to alternative oil routes.

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What Is Driving The Latest Surge In Global Oil Prices
The latest surge followed U.S. strikes on Iranian oil tankers and attacks by Iran-backed Houthi forces against Saudi Arabia
tippinsightsTIPP Staff

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