Brent oil breaches $100/barrel as Middle East conflict escalates

The benchmark Brent crude price surged past the $100 per barrel mark, reaching $105.70 and, in some market quotes, approaching $110 as tensions intensified in the Middle East. The price rally was driven by Houthi rebel attacks on oil tankers in the Red Sea, the collapse of a tentative US‑Iran cease‑fire, and a reduction in Kazakhstan’s output after alleged Ukrainian drone strikes forced the closure of its CPC Blend export terminal. The tightening of supply prompted Asian refiners to seek alternative cargoes and led Saudi Aramco to reroute shipments via Egypt.

The spike affected major oil companies. Exxon Mobil reported first‑quarter earnings of $1.16 per share, above forecasts, but disclosed a $706 million direct loss in the Middle East and a $3.88 billion impact from unsettled derivatives. Chevron posted adjusted earnings of $1.41 per share, yet its revenue fell short of expectations and it recorded a $1.55 billion negative free cash flow, citing cuts to its Tamar and Leviathan fields.

Following the peak, Brent fell back below $100, easing pressure on global stock markets and allowing a modest rebound in U.S. and European equities.