Hormuz concerns push Brent back above $100
Brent crude prices surpassed the $100-per-barrel mark for the first time since July 24, as tensions escalated in the Middle East and fears grew that the unrest could widen, threatening oil supplies from the region. Brent
Translated by Qiyas from الوسط — Original source
Brent crude prices surpassed the $100-per-barrel mark for the first time since July 24, as tensions escalated in the Middle East and fears grew that the unrest could widen, threatening oil supplies from the region. Brent futures rose $2.88, or 2.94 percent, to $100.80 per barrel by 12:10 GMT, after touching $100.95 earlier. West Texas Intermediate crude also climbed, gaining $2.57, or 2.76 percent, to $95.60 per barrel, its highest level since early June.
The breach of the $100 threshold by Brent reflects a shift in market sentiment regarding the trajectory of the crisis, as concerns have increasingly focused on the possibility of prolonged supply disruptions rather than merely temporary impacts from the conflict.
Ole Hansen, head of commodity strategy at Saxo Bank, said that Brent’s move to and beyond the $100 level signals a market that is being forced to significantly reassess how long the Middle East crisis could continue to constrain oil supplies from the region.
The price surge comes as oil shipments through the Strait of Hormuz face severe disruptions. According to Rystad Energy estimates, flows through the strait rose to around 8 to 9 million barrels per day in the week preceding the resumption of fighting on August 30—roughly double the previous week’s levels—before recently falling to less than 2 million barrels per day.
The Strait of Hormuz is one of the world’s most critical energy chokepoints, meaning any sustained disruption to shipping through it poses significant concerns for markets, particularly given the limited alternatives for rapidly transporting large volumes of crude oil and petroleum products.
Meanwhile, recent attacks have raised fears that the unrest could spread to alternative shipping routes.
Hammad Hussain, chief climate and commodities economist at Capital Economics, said market participants appear to be pricing in the possibility that the Middle East conflict will persist for longer, alongside the risk that the latest military escalations could disrupt oil flows from the region.
He added that one key risk is that recent attacks on oil tankers could reduce ship-to-ship transfers in the Gulf of Oman, which have so far played an important role in supplying global markets and curbing price spikes.
