Brent Oil Crosses 100 Dollar Threshold Amid Gulf Escalation
Brent crude reached 100.07 dollars per barrel this morning. The price rose 2.2 percent on fears of supply disruption in the Persian Gulf.
Brent crude hit 100.07 dollars per barrel this morning. The price rose 2.2 percent before slipping slightly below the threshold. WTI crude increased 1.8 percent to 94.73 dollars. This marks the first time prices have exceeded 100 dollars since July.
US military action triggered the spike. American forces destroyed five Iranian oil tankers and sank one. This response followed Iranian attacks on a US warship. Iran’s Revolutionary Guards retaliated with missile strikes on Jordan.
Strait of Hormus Faces Direct Threats
The Strait of Hormus remains the primary chokepoint for global energy. It carries about one-fifth of daily world oil transport. Attacks on shipping in this narrow waterway have intensified. Analysts say alternative routes via pipelines and trucks cannot replace this volume.
Gulf producers including Saudi Arabia and Iraq export nearly all their oil through this channel. Houthi rebels also struck energy facilities in Saudi Arabia earlier this week. These events confirm the region remains the epicenter of the six-month conflict.
China Resumes Heavy Oil Purchases
China has increased its demand for Middle East oil. Chinese buyers cut purchases by one-third at the start of the war. They relied on reserves and Russian supplies instead. As those sources proved insufficient, buyers returned to Saudi crude, according to the Financial Times.
Banks Forecast Higher Oil Prices
Major banks have raised their price forecasts. Goldman Sachs, Bank of America, and HSBC all adjusted their models upward. Daan Struyven of Goldman Sachs cited a potential Brent price of 120 dollars. He linked this scenario to intensified attacks on shipping. Tagesschau Wirtschaft reports that traders expect continued volatility.
