Oil prices above $100 for the first time since mid-May
As a result of escalating supply concerns and conflicts in the Middle East, oil prices are heading toward closing the week above $100 for the first time since mid-May, while diesel prices in the US have also broken records.
Escalating conflicts in the Middle East and fears of supply disruptions along critical shipping routes have driven rapid price increases in global oil markets. Brent and WTI crude barrel prices are on track to complete the week above $100 for the first time since mid-May.
Rise in Global Oil Prices
Increasing attacks along critical shipping routes in the Middle East and fears of prolonged supply disruptions have pushed oil prices toward a weekly close above $100 per barrel for the first time since mid-May.
Brent crude futures rose above $108 per barrel, while US West Texas Intermediate also surpassed the $103 mark, with both benchmarks gaining more than 6 percent on Thursday.
Regional Conflicts and Political Statements
Analysts stated that attacks originating from Yemen targeting energy facilities in Saudi Arabia show that the conflict has expanded beyond Iran and the Strait of Hormuz.
While US President Donald Trump stated that he thinks the war will end right after the midterm elections in November, Iran announced that ships were attacked near the Strait of Hormuz following US attacks.
Diesel Prices Break Records in the US
According to GasBuddy data, the national average diesel price in the US surpassed $6 per gallon for the first time on Thursday due to the US-Iran war and Ukraine's attacks on Russian refineries.
Demand Forecasts and Global Markets
While it was stated that China's demand will be decisive for the direction of oil, OPEC revised its global oil demand growth forecast for 2026 downward for the fifth consecutive time, reducing it to 380,000 barrels per day.