Brent crude surpasses $115/bbl on heightened Middle East tensions

The front-month ICE Brent contract has gained by $5.61/bbl on the day from Friday, to trade at $115.24/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent crude’s price has moved higher over the weekend as geopolitical risks in the Middle East intensified after Iran-backed Houthi militants joined the war.

The Yemen‑based Houthi militant group launched ballistic missiles targeting Israel over the weekend, following a barrage of US‑Israeli strikes on Iranian nuclear and ballistic missile facilities.

Israeli forces targeted several Iranian sites developing ballistic missile systems, the Israel Defense Forces (IDF) said on social media platform X.

The news has raised concerns of a broader regional escalation, according to market analysts.

“The [Houthi] group has previously disrupted Red Sea shipping, forcing vessels to reroute and heightening concerns over energy supply chains,” two analysts from ING Bank noted.

The US Central Command (CENTCOM) said about 3,500 additional soldiers arrived in the Middle East on Saturday, “in addition to transport and strike fighter aircraft, as well as amphibious assault and tactical assets.”

“A-10 Warthog and Apache helicopter gunships are flying strike missions inside Iranian airspace and the Strait of Hormuz at will,” US secretary of war Pete Hegseth said during a news brief at the Oval Office.

The additional military deployment in the region has “further amplified” the risk to oil flows, ING Bank’s analysts added.

Downward pressure:

While there is no significant pullback in Brent’s price today, market participants will keep an eye on emergency stock releases over the upcoming weeks, as a part of the International Energy Agency’s (IEA) commitment to ease some pressure on oil prices.

France has released about 580,000 bbls of oil products under the IEA’s coordinated emergency stock release effort, French media reported. This makes up “roughly 4% of its 14.5mb [14.5 million bbls] commitment,” ING Bank’s analysts said.

Earlier this month, the IEA agreed to release 400 million bbls of crude oil from strategic reserves, as the conflict in Iran continues to destabilise oil flows through the Persian Gulf.

The US will contribute 172 million bbls from its Strategic Petroleum Reserve (SPR) as part of the IEA-led effort, the US Department of Energy (DoE) said.

By Aparupa Mazumder

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