The price of oil has exceeded $100 per barrel for the first time since May, as the escalation of the conflict in the Middle East threatens further reductions in global supply, UNN reports citing CNN.
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The price of Brent crude oil, the global benchmark, jumped more than 6% on Thursday, briefly reaching $100.14 per barrel before slightly declining. The price of West Texas Intermediate crude oil, the US benchmark, rose nearly 5% to $90.98 per barrel.
Concerns about global oil supplies have intensified again after Yemeni Houthi rebels attacked Saudi vessels in the Red Sea, threatening to block the most important channel for oil exports from Saudi Arabia.
Trump dismissed the threat of a Red Sea blockade by the Houthis21.07.26, 19:43
According to analysts, the kingdom was shipping between 4 and 5 million barrels of oil through the Red Sea and the Bab el-Mandeb Strait, bypassing the Strait of Hormuz. This vital channel for the global oil market is now under threat, as the Houthis claimed to have struck two Saudi tankers on Thursday.
The price of Brent crude oil has surged by approximately $27 per barrel this month, increasing by more than a third. According to FactSet, the price last exceeded $100 on May 22.
Oil tankers turn around in the Red Sea as Houthis threaten merchant ships - media22.07.26, 15:36