Oil settles over $100 as Houthi attacks intensify Middle East supply risks

Oil prices surpassed $100 a barrel on Thursday for the first time since May, driven by intensified Middle East supply risks. This surge followed Houthi attacks on two Saudi oil tankers in the Red Sea's Bab el-Mandeb Strait, compounding existing disruptions in the Strait of Hormuz. Brent crude futures rose 7% to $100.69, while US West Texas Intermediate crude increased 6.2% to $92.19. Analysts, like Bob Yawger of Mizuho, noted that with increasing ground war possibilities and restricted tanker traffic, crude oil is nearing its four-year high. Goldman Sachs projected Brent could exceed $120 in Q4 if disruptions persist. The attacks have led to a significant drop in oil tanker traffic through both straits, with Iranian oil loadings reportedly falling to zero from 1.5-2 million barrels per day. OPEC+ members are expected to increase output by approximately 188,000 barrels per day for September to stabilize supplies.