Oil Prices Rise Above $100 as US-Iran Conflict Escalates
Oil Prices Rise Above $100 as US-Iran Conflict Escalates
Global oil prices rose above $100 per barrel on Wednesday as escalating military tensions between the United States and Iran heightened concerns about further disruption to crude supplies from the Middle East.
Brent crude, the international benchmark, gained 3.4 per cent to settle at $101.21 a barrel, while U.S. West Texas Intermediate crude rose to $96.05 a barrel. Brent’s move above $100 came amid growing concerns over disruptions to oil shipments through the strategically important Strait of Hormuz.
The latest price increase followed an escalation in maritime hostilities after the United States said it had destroyed five Iranian oil tankers. Reuters reported that Iran subsequently attacked 10 vessels near the Strait of Hormuz, further raising concerns about the security of one of the world’s most important oil shipping routes.
Iran also launched ballistic missiles towards a U.S.-used military base near Al-Azraq in Jordan. Jordanian authorities said their air defences intercepted 18 of 20 missiles, while the remaining two landed in unpopulated areas. The figure is based on the Jordanian authorities’ account and has not been presented here as independently verified.
The renewed hostilities have increased uncertainty around regional oil supplies and shipping, contributing to the latest surge in crude prices. Further disruption in the Gulf could place additional pressure on global energy markets.
