SINGAPORE, Sept 9 - Benchmark Brent crude futures climbed past the $100 a barrel threshold on Wednesday, topping that symbolic level for the first time since July 24 as renewed conflict in the Middle East increased worries about the reliability of oil flows from the region.
By 0721 GMT, Brent contracts were trading at $100.07 a barrel, up $2.15 or 2.2% on the session. U.S. West Texas Intermediate crude rose by $1.70, or 1.83%, to $94.73 a barrel at the same time.
Prices for Brent have advanced about 25% since early last month as prospects for a lasting resolution to the six-month-old U.S.-Iran conflict have diminished. This week, attacks by Iran-backed Houthi forces on Saudi energy facilities set oil infrastructure ablaze, raising the prospect of a wider escalation of the confrontation.
The Houthi strikes also pose a direct risk to crude shipment routes via the Red Sea, an important alternative corridor to the Strait of Hormuz. The Strait of Hormuz itself has seen crude flows severely curtailed since the February 28 start of the Iran war, amplifying concerns about global supply channels.
A growing number of financial institutions have responded to the market moves by raising their price outlooks. Banks mentioned in market reports in recent days that have increased crude price forecasts include Goldman Sachs, Bank of America and HSBC.
Data shared by Rystad Energy, cited by its Chief Economist Claudio Galimberti, underline the volatility in Hormuz flows. In the week before fighting resumed on August 30, roughly 8 million to 9 million barrels per day moved through the strait - about double the previous week’s volume - although more recent flows have fallen below 2 million barrels per day.
Supply-side offsets to the regional strain have come from non-OPEC producers. The United States, Canada and Guyana have increased output in recent periods, but those gains were set against an International Energy Agency projection issued last month indicating a contraction in global oil supply this year of 4.3 million barrels per day, or roughly 4%.
The market reaction on Wednesday reflected those intersecting forces: tightened regional transit, fresh disruptions from attacks on energy infrastructure, and upward revisions to pricing expectations from major lenders. Traders and industry participants will be watching both shipping lanes and announced production changes closely in the near term.