Crude oil climbed above $100 a barrel on Thursday, its highest level since May 19, as escalating tensions in the Middle East stoked fears of a prolonged disruption to global energy supplies. Iran signalled it will continue retaliatory strikes if US attacks persist, while Iran-backed Houthi forces are targeting Saudi assets and threatening key shipping routes.
Saudi Arabia’s crude output fell sharply in August 2026, dropping by about 1.9 million barrels per day to 6.238 million barrels per day, the lowest level since 1990. This deteriorating backdrop in the Middle East has dimmed expectations that regional supply can quickly return to normal, just as Asian economies are being forced back into the energy market.
China imported 8.93 million barrels per day of crude oil in August, a 6.2% increase from July. Since the start of the conflict, China’s reliance on its inventories had helped shield the global economy from a more severe energy shortfall, despite tankers being blocked in the Persian Gulf.
