Brent crude has crossed the psychologically important $100-a-barrel mark once again. But its unlike the previous oil rally. This surge is being powered by something more dangerous -- the simultaneous threat to two of the world's most important energy chokepoints. The Strait of Hormuz was already under severe disruption due to the US-Iran conflict. Now Yemen's Houthis have opened a second front by targeting Saudi oil tankers in the Red Sea and threatening shipping through Bab el-Mandeb.
For oil traders, policymakers and central bankers, the question is no longer whether the Middle East crisis will affect energy markets but how much worse it can get. Analysts have started saying oil at $120 - and even $150 -- is in sight.
