Oil Prices Soften Near $100 Amid Rising Middle East Supply Risks
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Crude oil prices opened lower this week but remain elevated due to ongoing Middle East tensions, including Houthi attacks against Saudi Arabia and Iranian strikes on commercial shipping in the Persian Gulf.
Brent crude dropped to $114.42 per barrel, down from over $116 last week, while West Texas Intermediate (WTI) traded at $100.97 per barrel. Despite the minor pullback, both benchmarks remain significantly higher than their levels at the end of last year, when both traded below $60 per barrel. WTI previously peaked above $112 per barrel in April.
Futures markets continue to exhibit a pattern of sharp price increases followed by minor pullbacks. Although physical crude prices have eased slightly from earlier highs, the overall upward trend in futures contracts remains a primary concern for the energy sector.
Escalating security threats in regional supply corridors continue to support prices. Over the weekend, Yemeni Houthis launched fresh strikes targeting Saudi energy infrastructure and an airport. Simultaneously, shipping data reveals a surge in maritime conflict.
Reports from the UK Maritime Trade Operations and the International Maritime Organization indicate that at least 28 commercial vessels were targeted in the Strait of Hormuz this month alone, with actual figures expected to be higher due to unreported incidents. At least 11 of the confirmed attacks caused damage to supertankers, worsening conditions in an already tight global market for Very Large Crude Carriers (VLCCs).
