Brent crude hits $91 as Middle East tensions disrupt global supply

Global oil prices surged on Wednesday, 22 July, with Brent crude hitting a five-week high of $91.12 per barrel as geopolitical tensions in the Middle East and Red Sea disrupted supply expectations. The 1.4% increase follows reports of intensifying friction between the United States and Iran, alongside renewed threats to commercial shipping lanes from Houthi forces. Geopolitical risks drive price spike The price rally is primarily triggered by fears of a broader regional conflict that could physically restrict crude flows through the Strait of Hormuz. West Texas Intermediate (WTI) also followed the upward trend, trading at $86.85 per barrel. Market data indicates that Brent has now maintained a position above the $90 threshold for the first time since June, driven by a combination of high seasonal demand and a shrinking global inventory buffer. The immediate catalyst for this price movement is an official briefing from the U.S. State Department regarding naval posture in the region, coupled with a statement from Houthi leadership indicating targeted operations against tankers in the Bab el-Mandeb strait. This has led insurance premiums for shipping to rise, directly impacting the landed cost of crude in European and Asian markets. Impact on UAE and global consumers For UAE-based businesses and residents, the sustained period of oil prices above $90 typically precedes adjustments in local fuel prices, which are reviewed monthly by the UAE Fuel Price Committee. While higher…