Oil nears $100 as fresh Middle East strikes raise supply risks

Business Recorder reported that crude futures climbed for a fourth consecutive session on Wednesday, as fresh attacks across the Middle East raised fears of supply interruptions. By 0212 GMT, Brent had added 1.4% to $99.33 a barrel, while US West Texas Intermediate traded at $94.34 after a 1.4% gain. Brent has risen by about a quarter since early August, leaving prices close to the $100 mark.

The conflict escalated on Tuesday when Houthi forces in Yemen struck several cities in Saudi Arabia, pulling another US partner deeper into the fighting. American forces struck several Iranian oil tankers, while Iran aimed an attack at an American installation in Jordan.

ING analysts said the latest developments suggest peace talks remain some distance away, and that a sizeable premium for risk will likely stay in prices. OCBC analysts pointed to Iranian strikes on Saudi energy facilities, followed by the loss of five Iranian tankers, as grounds for concern about a prolonged supply disruption. Saudi Arabia has rerouted some shipments out of the Strait of Hormuz, but prolonged strikes on the kingdom could make it harder to keep crude reaching world markets.