Middle East Tensions Keep Oil Prices Above $100 Threshold

The current price structure reflects a volatile climb where spikes consistently outpace corrections. While Brent dipped from last week’s $116 level and West Texas Intermediate retreated from its April high of $112 to trade at $100.97, both benchmarks remain nearly double their value compared to late 2025. This persistent strength suggests that physical supply concerns are effectively neutralizing short-term technical sell-offs.

Escalating security threats in critical maritime corridors and energy infrastructure hubs drive this instability. The UK Maritime Trade Operations and the International Maritime Organization report that 11 supertankers sustained damage in recent weeks. Given the global scarcity of very large crude carriers, these attacks act as a force multiplier for price volatility. Simultaneously, Houthi strikes on Saudi oil facilities and airports over the weekend maintain a high-risk environment for regional producers, ensuring that any dip in trading remains shallow and brief.