Geopolitics fuel extended oil rally with Brent boiling above $105 mark

Brent crude futures are seen boiling above $105 mark on Thursday, its highest level since May driven by escalatory strikes between Iran and the US. Meanwhile, Saudi Arabia?s oil production has fallen to its lowest this year after Iran-backed Houthi rebels in Yemen threatened shipments from the kingdom?s west coast. Saudi Arabia reportedly told Opec it produced 6.2 million barrels a day in August, the lowest monthly figure in 2026 and 23 per cent lower than in July, according to a report published by the oil cartel on Thursday. Reports indicate Iran has no intention of backing down in the face of an American naval blockade and will escalate its strikes if the US continues attacking its territory. US President Donald Trump also stated the war would only end after the November midterm elections and that significant gasoline price relief would not come before then, signaling little prospect of a near-term de-escalation in the conflict, now in its seventh month. Brent crude is currently seen at 105.25, up 3.77% on the day while WTI futures are racing towards $100 mark, up almost 4%.

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