Brent crude futures surpassed $100 a barrel for the first time since July, driven by escalating attacks on tankers by Iran and the U.S., raising concerns over energy supply disruptions from the Middle East. As of 1:39 p.m. EDT, Brent crude was up 3.1% at $100.95, while U.S. West Texas Intermediate crude rose 3% to $95.78, marking its highest price since early June. The oil market had previously stabilized below the $100 mark, but renewed hostilities have shifted expectations regarding the conflict’s duration and its impact on supply.
Iran’s recent strikes on vessels near the Strait of Hormuz and the U.S. sinking of Iranian oil tankers have intensified the six-month war. Shipping volumes through this critical waterway remain significantly lower than pre-war levels, raising alarms about future supply disruptions. Experts note that the ongoing back-and-forth attacks complicate any prospects for peace and suggest that tighter supplies are becoming the norm.
In the physical crude oil market, prices have already exceeded $100 a barrel, with refined fuel prices also soaring due to ongoing conflicts. U.S. gasoline averages $4.22 per gallon, while diesel approaches $6, reflecting a global refining crisis. Additionally, recent Houthi attacks on Saudi energy facilities have further complicated the situation, threatening alternative shipping routes and exacerbating supply concerns.
