Oil Prices Climb Above $110 as Middle East Supply Fears Persist
Shipping costs quadrupled and insurers raised premiums as attacks on vessels in the Strait of Hormuz pushed oil prices to multi-month highs.
- On Tuesday, oil prices surged as energy markets reacted to escalating instability in the Middle East, with United States crude jumping 5% to about $109 a barrel and international Brent crude climbing 1.5% to more than $111.
- Iran-Aligned Houthi rebels claimed Monday to have struck airport, energy, and military targets in Saudi Arabia, while during the past two weeks, at least 18 vessels have been attacked in the Strait of Hormuz, according to the ship-tracking group Kpler.
- Much of the increase reflects risk premiums for sailors and insurance, with tanker charter costs quadrupling since September. The national average price of unleaded was on pace to reach $4.28 a gallon, its lowest level in a month.
- High gas prices remain a major issue for United States voters ahead of the midterms, where Republicans face dwindling odds of maintaining control of Congress. An NBC News poll found 67% of United States adults believe gas prices are a "very serious" or "somewhat serious" problem.
- Advanced oil contracts hit record highs, "implying an extended period of high oil prices deep into 2027," analysts with Deutsche Bank said Tuesday. Chief Investment Officer Peter Boockvar of One Point BFG Wealth Partners noted 2027 contracts are moving higher as the reality of sustained elevated prices sinks in.
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Conflicts in the Middle East and Eastern Europe, along with attacks on tankers, have pushed oil prices to a monthly increase of over 10 percent. Brent crude rose to $110.25 a barrel after reports of a US-Iran deal being close were denied.
Oil prices today: Brent crude tops $110 as Middle East tensions threaten shipments
Oil prices have risen due to growing concerns over disruptions in Middle East supplies and threats to shipping routes. Recent attacks on vessels and infrastructure have heightened worries among traders and analysts. While Brent crude futures climbed to $110.10, WTI crude also saw an increase following previous declines. US officials are working with refiners to address rising fuel prices and shortages.
Oil Prices Climb Above $110 as Middle East Supply Fears Persist
Crude oil prices ticked higher earlier today, extending gains from Tuesday as traders continued to worry about the stability of flows out of the Middle East. At the time of writing, Brent crude was trading at $110.30 per barrel, with West Texas Intermediate at $99.12 per barrel, both up by over 1% from Tuesday. The latest inventory report out of the U.S. contributed to the bullish sentiment with another sizable draw estimated for last week. The …
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