Geopolitical Panic Overwhelms Supply and Demand Fundamentals, Brent Crude Futures Breach $100 Mark Again

TradingKey - At 9:25 AM ET, international oil prices surged again due to the continuous escalation of tensions in the Middle East, with Brent crude futures breaking back above the $100 per barrel mark (before paring gains slightly).

Latest trading data shows that Brent crude futures briefly rose to around $101, an intraday gain of nearly 10%; meanwhile, U.S. WTI crude futures also moved higher, at one point approaching $96.

The market generally believes that this rapid rise in oil prices is primarily driven by the sharp escalation of energy transportation risks in the Middle East. As the conflict intensifies, oil tanker traffic near the Strait of Hormuz is frequently threatened; the strait handles about 20% of global oil shipments, and any disruption to shipping would pose a significant shock to global crude supplies.

Notably, although several countries including the United States have announced releases from their Strategic Petroleum Reserves to ease supply concerns, the measure has not yet significantly curbed the rise in oil prices, as market fears of energy supply disruptions continue to mount.

Analysts pointed out that if the situation in the Middle East cannot be mitigated in the short term, the probability of oil prices fluctuating above $100 remains high, and the geopolitical premium in the energy market may continue to push up global inflationary pressures.