Oil Prices Near $100 Amid Middle East Conflict Escalation

On September 9, global oil prices surged towards $100 per barrel, with Brent crude futures reaching an intraday high of $99.46 before settling at $97.92. This increase followed attacks by Yemen's Iran-backed Houthi forces on four Saudi Arabian cities: Abha, Khamis Mushait, Jazan, and Najran.

The Houthis targeted a Saudi airbase and facilities belonging to Saudi Aramco using drones and missiles, resulting in 73 injuries, including women and children, and fires at several locations. Saudi Arabia condemned the attacks as a dangerous escalation and pledged to respond.

The conflict has raised fears of broader disruptions to crude production and shipping, particularly through the Strait of Hormuz, a critical route for global oil supplies. Financial institutions like Goldman Sachs and HSBC have raised their oil-price forecasts, anticipating that shipping disruptions may continue into 2027 due to geopolitical risks and physical supply constraints.