Brent crude rises above $100 a barrel as Middle East conflict intensifies

Brent crude futures climbed above $100 a barrel on Wednesday, reaching a level not seen in more than six weeks. It was the first crossing of that threshold since July 24, according to The Express Tribune, as intensifying conflict in the Middle East raised concerns about oil flows from the region. Brent was last quoted at $99.93 after touching $100.19 earlier, while US West Texas Intermediate stood at $94.52.

Analysts quoted in the report believe markets are pricing in a longer conflict and a bigger threat to supplies. Capital Economics economist Hamad Hussain said the key concern is whether recent tanker strikes cut back transfers between vessels near the Gulf of Oman, which have helped keep prices in check. Goldman Sachs, Bank of America and HSBC are among banks that have raised their crude price forecasts in recent days.

Iran-backed Houthi attacks on Saudi energy sites this week caused fires at oil installations, raising the risk of wider escalation and threatening crude shipments through the Red Sea. That route had become an important alternative to the Strait of Hormuz, where oil flows have been heavily reduced since hostilities with Iran began on February 28. Brent reached its peak of $126.41 on April 30, while the International Energy Agency expects global supply to fall 4.3 million bpd this year.