Global oil prices climbed above $100 a barrel on Wednesday, reaching the highest level since July, as escalating military tensions between the United States and Iran raised fresh concerns about disruptions to crude supplies.
Brent crude, the international benchmark, gained around 2.1 percent, moving slightly above $100 a barrel. It was the first time Brent had crossed the $100 threshold since July 24.
The latest surge followed a sharp escalation in attacks involving shipping in and around the Strait of Hormuz, one of the world’s most important oil transit routes.
US forces said they destroyed five Iranian crude oil tankers on Tuesday after Iran’s Islamic Revolutionary Guard Corps reportedly attacked a US warship.
Iran responded on Wednesday, claiming it had attacked two US vessels and eight oil tankers. Iran’s Revolutionary Guards also said several ships attempting to pass through what it described as a prohibited and unsafe area of the Strait of Hormuz had been targeted.
Iran further reported ballistic missile strikes on a US air base in Jordan, raising concerns that the conflict could expand to other parts of the Middle East.
The intensifying conflict has increased fears of another disruption in global crude supplies, particularly as countries continue to draw down their strategic oil reserves.
Oil prices had previously surged to around $126 a barrel in late April during the peak of the US-Iran conflict. Prices later declined to approximately $70 following a ceasefire agreement in early July.
However, crude prices have steadily recovered over the past six weeks as attacks on shipping continued and expectations for a quick resolution to the conflict weakened.
The latest move above $100 has renewed concerns about higher energy costs and the potential economic impact of prolonged disruptions to global oil supplies.
