Oil Stays Above $100 as Middle East Tensions Disrupt Supplies

Shibbir Ahmed, New York — Oil prices remained above $100 a barrel on Friday, putting both major benchmarks on track for their strongest weekly gains in months as escalating violence in the Middle East disrupted key shipping routes and heightened concerns over global supplies.

Brent crude futures rose earlier in the session to above $108 a barrel before giving back some of those gains. U.S. West Texas Intermediate crude also traded above $100, after both benchmarks jumped more than 6% on Thursday.

Brent was last trading around $104 a barrel, while WTI fell below the $100 mark later in the session. Despite the pullback, both contracts remained sharply higher for the week. Reuters reported that Brent and WTI were on track for weekly gains of more than 8%.

The latest price moves have been driven largely by growing risks to oil shipments through the Strait of Hormuz and the Red Sea, two critical routes for global energy supplies. Increased attacks on tankers and other shipping have raised concerns that disruptions could persist.

Iran-aligned Houthi forces also seized Yemen’s port of Mocha, according to reports, adding to concerns about shipping through the Bab al-Mandeb Strait and the wider Red Sea region. At the same time, traffic through the Strait of Hormuz remains heavily restricted.

The Strait of Hormuz is one of the world’s most important oil transit routes. Oil flows through the waterway have fallen sharply from levels seen before the latest escalation in fighting, putting additional pressure on already tight global supplies.

Supply concerns have also been reinforced by disruptions to energy infrastructure in the region. Reuters reported that Saudi Arabia’s crude production fell to about 6 million barrels per day in August, its lowest level in roughly three decades, following attacks on energy facilities.

The disruption is also being felt in fuel markets. U.S. diesel prices have climbed to record levels, increasing costs for transportation, agriculture and other industries. Higher energy prices are also raising concerns about renewed inflationary pressure around the world.

Oil prices had already risen sharply in recent weeks as the conflict involving the United States and Iran intensified. Brent crude crossed the $100 threshold on Wednesday for the first time since July, and Thursday’s rally pushed both Brent and WTI above $100.

Markets remain focused on whether diplomatic efforts can restore safe passage through key shipping routes. Any sustained improvement in shipping conditions could ease some of the recent price pressure, while further attacks or prolonged restrictions could keep oil prices elevated.

For now, traders remain cautious as the conflict continues to threaten one of the world’s most important energy supply corridors.