Middle East Tensions Surge: Brent Crude Surpasses $100 for First Time in Two Months

As tensions escalated in the Middle East on the 23rd (local time), the price of Brent crude, the global benchmark for oil, surpassed $100 per barrel for the first time in about two months.

At 9:15 a.m. Eastern Time on this day, September Brent crude futures on London's ICE Futures Europe exchange traded at $100.05 per barrel, up 6.4% from the previous session.

This marks the first time Brent crude futures have topped $100 a barrel since May 26.

At the same time, West Texas Intermediate (WTI) crude for September delivery on the New York Mercantile Exchange stood at $90.12 per barrel, up 3.8% from the previous session.

Amid ongoing military clashes between the United States and Iran, news that a Saudi Arabian oil tanker was attacked in the Red Sea has further heightened concerns over crude supply disruptions.

Earlier, Yemen's Iran-backed Houthi rebels announced that they had attacked two Saudi oil tankers attempting to pass through the Bab el-Mandeb Strait, a gateway to the Red Sea.

The Houthis had previously declared a blockade of the Red Sea on the 20th, warning of retaliation against Saudi Arabia's airstrikes on Yemen's Sana'a Airport.

In the market, worries are growing that concerns over navigation in the Strait of Hormuz—a vital chokepoint for global oil transport—are expanding to the Bab el-Mandeb Strait, potentially disrupting the entire Middle Eastern crude supply chain.

In particular, if the Bab el-Mandeb Strait is blocked, the alternative route for exporting crude from Saudi Arabia's western Red Sea port of Yanbu, bypassing the Strait of Hormuz, would also be effectively cut off.

In this scenario, Saudi Arabia's crude export capacity would be severely restricted, and about 7% of the world's crude supply would be lost.

Brent crude, which had dropped to the $71 per barrel range earlier this month, has surged by more than 30% in just three weeks, reigniting global inflationary pressures.

Market watchers do not rule out the possibility that Brent crude could maintain its upward trend above $100 a barrel if the situation in the Middle East deteriorates further.
※ Please note: This article was translated by AI and may contain errors.