Oil Prices Surpass $100 a Barrel for the First Time Since May

The escalating conflict in the Middle East has led to increased pressure on global oil supplies, affecting oil prices. The global oil benchmark, Brent crude, saw a significant increase of over 6% today, briefly reaching $100.14 per barrel before slightly retreating. In the US, West Texas Intermediate (WTI) crude rose by approximately 5% to $90.98 per barrel. The concerns over the potential closure of a critical oil export route by Yemen's Houthi rebels in the Red Sea have resurfaced. Saudi Arabia sends around 4 to 5 million barrels of oil per day through the Red Sea and the Bab el-Mandeb Strait, bypassing the Strait of Hormuz, which is vital for the global oil market. The Houthi decision has sparked anxiety in oil markets. Brent crude's performance this month is noteworthy, with an increase of about $27, representing more than a third of its value. According to FactSet, Brent crude last traded above $100 on May 22.