📈 Global Oil Prices Surge Past $100 Amid Middle East Conflict Escalation

• Market Benchmarks: Benchmark Brent crude rose above $100/bbl (touching $100.19 before trading at $99.93, up 2.05%), reaching a six-week high. U.S. WTI crude climbed 1.60% to $94.52/bbl. Brent prices are up by ~25% since early August. • Supply & Geopolitical Drivers: Escalating U.S.-Iran hostilities and recent Houthi attacks on Saudi energy facilities have heightened regional security concerns. Daily crude flows through the crucial Strait of Hormuz dropped from 8–9 Mn bpd in late August to under 2 Mn bpd recently. • Global Outlook: Major financial institutions including Goldman Sachs, Bank of America, and HSBC have raised price forecasts. Despite increased output from non-OPEC producers (U.S., Canada, Guyana), the IEA projects global oil supply will shrink by 4.3 Mn bpd (~4%) this year. • Impact on Sri Lanka: Rising global oil prices threaten to increase national import costs for petroleum products, placing severe pressure on Sri Lanka's foreign exchange reserves, inflation, and local transport, manufacturing, and energy sector costs.