BRENT CRUDE TOPS $100 AS RED SEA TENSIONS THREATEN SUPPLY

Brent crude oil reached $100 per barrel, whilst US crude topped $90 per barrel, according to trading data. The price rises followed attacks on Saudi Arabian tankers in the Red Sea by Houthi militants, which escalated regional tensions. Oil expert Eric Nuttall of Ninepoint Partners said the market faced higher risk from supply disruptions. Iranian oil currently helps restrain prices by at least $7.50 per barrel, according to industry commentary.

Middle Eastern oil production remains down by 7–8 million barrels per day from normal levels, whilst global onshore inventories sit at near record low seasonal levels, according to Nuttall's assessment. The United States Strategic Petroleum Reserve is increasingly depleted, and refined product stocks face significant tightness. Iran currently sells some oil on global markets whilst avoiding Strait of Hormuz blockades. Goldman Sachs issued warnings about further upward pressure on oil prices.

Industry analysts identified additional risks to supply should Iranian production face further disruption. Nuttall stated the world cannot afford to lose a further 2.6 million barrels per day of Iranian production given current market conditions. A complete loss of Iranian oil exports would represent a substantial shock to global energy markets. Prices could potentially reach $120 per barrel under certain supply disruption scenarios, according to market commentary.