Oil prices surge above $112 amid Middle East conflict escalation

Crude oil prices have risen by over 3%, with Brent crude exceeding $112 per barrel, driven by fears of further escalation in the conflict involving Iran. Markets reacted to reports that U.S. and Israeli forces have drafted plans for new strikes against Iran. Additionally, Houthi rebel attacks in Saudi Arabia have raised concerns regarding potential disruptions to global crude supplies.

Despite the volatility, Gulf nations have increased oil exports to 24.6 million barrels per day, surpassing pre-conflict levels. To bypass risks in the Strait of Hormuz, where at least 12 attacks were recently recorded, exporters are utilizing alternative methods such as ship-to-ship transfers and redirected routes through the Red Sea and Egyptian infrastructure.

In the United States, crude oil reserves fell by 3 million barrels last week, exceeding market expectations. To manage costs, the Trump administration has offered to provide loans for up to one-third of a 1-million-barrel oil reserve for emergency heating in the U.S.