Oil price passes $100 a barrel again as Middle East conflict escalates
Global oil prices have climbed above $100 per barrel for the first time in two months, reflecting growing concerns about supply disruption from escalating Middle East tensions. The Iranian-aligned Houthi militia struck two Saudi oil tankers in the Red Sea with ballistic missiles and drones, whilst simultaneous US-Iran tensions threaten shipping through the Strait of Hormuz, creating a dual risk to petroleum exports from the region.
The price movement reflects a sharp reversal from earlier this month, when prices had fallen to $71 amid expectations of regional de-escalation. The rally has been triggered by the collapse of a US-Iran understanding and renewed military hostilities. Oil benchmarks remain significantly below their April peak of $126 per barrel, which followed US-Israel airstrikes on Iran.
- Oil prices surged above $100 per barrel as Middle East regional tensions worsened, driven by Houthi attacks on Saudi tankers and escalating US-Iran hostilities
- Prices had fallen to $71 in early July following ceasefire expectations, but resumed climbing after diplomatic agreements collapsed and military confrontations resumed