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Brent tops $100 as US and Houthi actions widen Middle East energy risk
Brent has gained about 25% since early August and reached its highest level in roughly six weeks, even as the dollar stays broadly weaker and European equities fall.
Brent oil moved above $100 Wednesday after the US destroyed five Iranian crude tankers and Houthi attacks widened the perceived risk around Saudi energy infrastructure, extending oil’s rise to roughly 25% since early August, according to Action Forex.
The outlet said the move comes alongside escalating Middle East military activity, including a Tuesday action tied to an attempted Iranian attack on a US warship, as described by CENTCOM, and continued disruptions to Saudi energy facilities that go beyond the Strait of Hormuz.
Action Forex noted that oil spikes in prior phases of the conflict often supported the dollar through a combination of defensive demand and hawkish Fed repricing, but this time the broader market reaction looked different: the dollar was broadly weaker across major currencies.
Gold and silver were recovering, bitcoin and ethereum were firmer, and the Swiss franc was holding up despite limited evidence of an SNB rate-hike catalyst, while European equities were falling. The piece added that traders may be focusing more on upcoming catalysts such as the ECB decision and US CPI than on Wednesday’s move itself, since the usual dollar reaction did not fully show up.
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