Oil prices surged above $100 as Middle East tensions escalate.

Oil prices surged above $100 as Middle East tensions escalate. Brent crude jumped to $104.90 per barrel while U.S. West Texas Intermediate climbed 3% to $93.05 following Iran's rejection of U.S. peace proposals. The conflict has severely disrupted the Strait of Hormuz, which handles one-fifth of global crude and liquefied natural gas supplies, marking the largest oil supply disruption on record. Iran demands a complete halt to attacks, sovereignty recognition over the strait, and compensation for war damages before ending defensive operations. Russia's oil export capacity remains 40% offline due to Ukrainian drone strikes and pipeline disruptions. Macquarie forecasts oil could reach $150 per barrel if disruptions persist through April, though prices may find support at $85-$90 range with gradual recovery toward $110 as normal flows resume.