Crude oil prices have risen above $80 U.S. a barrel and hit their highest level in more than two months as tensions in the Middle East continue to rise.
The price of Brent crude oil, the international standard, is trading right around $83 U.S. a barrel after three American soldiers were killed in a drone attack carried out by Houthi militants in Jordan.
The price of West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is currently at $77.43 U.S. a barrel as President Joe Biden vows to retaliate for the American deaths.
The ratcheting up of tensions has added to supply disruptions throughout the Middle East as attacks on container ships continue along the Red Sea transportation corridor that connects Europe and Asia.
Risks of widening conflict in the Middle East have energy traders on edge and concerned about current supplies being able to meet global demand.
At the same time, a Hong Kong court has ordered the liquidation of property giant China Evergrande, one of the country’s largest real estate developers, raising further concerns about economic stability in China, which is the world’s largest oil importer.
And Russia has announced that it is likely to cut its energy exports in coming weeks after fires disrupted operations at its Black Sea refineries.
Russian oil facilities are coming under increasing attack from Ukraine’s military, mainly through drone strikes.
