Brent tops $98 as Middle East tensions stoke supply concerns

Brent crude futures climbed above $98 a barrel on July 23 for the first time since 8 June, extending gains driven by escalating tensions in the Middle East and growing concerns over global oil supplies.

According to trading data, the September Brent contract on the ICE exchange in London rose above the $98 mark during the session, Caliber.Az reports per foreign media. 

Earlier, the benchmark had exceeded $97 a barrel for the first time in more than six weeks.

As of 11:01 Baku time, Brent was trading 3.25% higher at $97.13 a barrel. By 11:06, it had eased slightly to $97.06, up 3.18%.

The rally began during Asian trading, when oil prices surged to their highest levels in more than six weeks, with Reuters attributing the gains to heightened geopolitical risks in the Middle East.

Brent crude futures earlier rose $2.20, or 2.3%, to $96.27 a barrel, while US West Texas Intermediate (WTI) crude gained $1.65, or 1.9%, to $88.48 a barrel.

Market sentiment was boosted by reports of fresh attacks on oil tankers in the Red Sea by Yemen's Houthis, alongside renewed US strikes on targets in Iran, raising fears of potential disruptions to energy shipments.

Separately, Iran's Islamic Revolutionary Guard Corps (IRGC) claimed that an oil tanker caught fire south of the Strait of Hormuz after attempting to navigate what it described as a mined route, while two other vessels were forced to change course.

The IRGC also said the Strait of Hormuz remained under its control and would stay closed until the United States halted its military actions in the region.

By Aghakazim Guliyev