Brent Oil Nears $100 as Middle East Attacks Trigger 5% Surge

Brent crude oil prices surged by about five per cent on Thursday, pushing the international benchmark towards the $100-a-barrel mark after Houthi rebels claimed responsibility for attacks on two Saudi oil tankers in the Red Sea.

Brent North Sea crude rose to $98.80 a barrel, while the United States benchmark, West Texas Intermediate (WTI), gained 3.8 per cent to trade at $90.11 a barrel.

The sharp rise in oil prices came amid growing concerns that the latest attacks could widen the ongoing Middle East conflict and threaten the security of vital shipping routes and global energy supplies.

The Red Sea remains a major corridor for international trade, with disruptions in the region capable of increasing shipping costs, delaying energy deliveries and putting additional pressure on already volatile global oil markets.

The reported attacks on Saudi tankers have therefore heightened concerns among energy traders that the conflict could spread to additional fronts, potentially affecting crude oil production, transportation and exports from the oil-rich Middle East.

The latest rally also underscores the sensitivity of global oil markets to geopolitical developments, particularly in a region responsible for a significant share of the world's crude oil supplies.

Analysts and investors are expected to closely monitor developments in the Red Sea and wider Middle East, as any sustained disruption to oil transportation could further push prices higher and increase pressure on fuel costs and inflation across major economies.

The surge in crude prices could also have significant implications for oil-producing countries such as Nigeria, potentially improving government revenues if higher prices are sustained, while simultaneously raising concerns over domestic fuel costs and broader inflationary pressures.

With Brent crude now approaching the psychologically important $100-a-barrel threshold, further escalation of the conflict could determine whether the benchmark breaks above that level in the coming days.