Key Takeaways
- Oil prices rose for the fourth consecutive session, reaching $99.33 per barrel for Brent crude.
- Houthis in Yemen launched strikes on Saudi cities, while Iran targeted a US base in Jordan.
- Analysts warn that ongoing conflicts could lead to further disruptions in Middle East oil supplies.
Oil prices surged for the fourth consecutive session, reaching $99.33 per barrel for Brent crude by 0212 GMT on Wednesday, according to market reports.
The rise in prices was driven by renewed attacks across the Middle East, which heightened concerns over potential supply disruptions.
US West Texas Intermediate crude also saw a significant increase, rising to $94.34 per barrel, up 1.4% from the previous session.
Since early August, Brent crude prices have risen by a quarter, reflecting the fading hopes for a permanent resolution to the six-month-old conflict.
The escalation of the Middle East war, with Houthis in Yemen launching strikes on several Saudi cities, further embroiled a US ally in the conflict.
Iran, in retaliation, targeted a US base in Jordan, while US forces hit multiple Iranian oil tankers, leading to a tense situation.
Iran has threatened to tackle economic problems created by sanctions, while the latest attacks threaten to deepen disruptions to Middle East oil supplies.
Analysts from ING and OCBC warned that ongoing conflicts could lead to further risks for global oil markets, as strikes on regional energy infrastructure and key shipping lanes already strain supplies.
Saudi Arabia has diverted some exports away from the Strait of Hormuz, but any sustained attacks on the kingdom could complicate efforts to keep crude flowing to global markets.
