Oil prices have surged due to intensifying conflict in the Middle East, with Brent crude trading near $107 a barrel after a significant 6% jump in the previous session. This surge puts Brent on track for its biggest weekly gain since July. West Texas Intermediate also rose above $104 a barrel.
The escalation in hostilities, particularly between Yemen-based Houthi militants and Saudi-backed forces, is stoking fears of deeper supply disruptions. This conflict, alongside the standoff between Iran and the U.S., has pushed oil prices to their highest in nearly four months, with Brent crude briefly hitting a four-month high of $109.97 a barrel.
Analysts are monitoring Chinese purchases to gauge the extent of the rally. The rising oil prices are igniting global inflation risks, leading to a sell-off in bond markets and increased expectations for central bank interest rate hikes. RBC Capital Markets' Helima Croft predicts Brent could reach $121.99 a barrel if the Saudi-Houthi war intensifies.
