Daijiworld Media Network - Singapore

Singapore, Sep 9: Brent crude oil prices crossed the $100-a-barrel mark on Wednesday for the first time since July 24, amid growing concerns over disruptions to oil supplies due to escalating conflict in the Middle East.

Brent crude futures rose $2.15, or 2.2%, to $100.07 a barrel by 0721 GMT, while US West Texas Intermediate (WTI) crude gained $1.70, or 1.83%, to $94.73 a barrel.

Brent prices have surged by around 25% this week following attacks by Iran-backed Houthi forces on Saudi energy facilities, which set several oil installations ablaze and raised fears that the conflict could spread further and disrupt regional energy supplies.

The attacks have also heightened concerns over crude shipments through the Red Sea, which serves as an important alternative route to the Strait of Hormuz. Oil flows through the strategic waterway have been severely affected since the Iran war began on February 28.

Several major banks, including Goldman Sachs, Bank of America and HSBC, have raised their crude oil price forecasts in recent days amid the worsening supply outlook.

According to Claudio Galimberti, chief economist at Rystad Energy, around 8 million to 9 million barrels per day flowed through the Strait of Hormuz in the week before fighting resumed on August 30, nearly twice the previous week's volume. However, flows have more recently dropped below 2 million barrels per day.

Although non-OPEC producers such as the United States, Canada and Guyana have increased oil output, the International Energy Agency said last month that global oil supply was expected to decline by 4.3 million barrels per day this year, equivalent to around 4%.

The sharp rise in crude prices has intensified concerns over the impact of prolonged regional instability on global energy markets, with further disruptions potentially putting additional pressure on oil prices.