Key facts
- Brent crude futures settled at $101.21 a barrel, the highest since late May.
- U.S. West Texas Intermediate crude settled at $96.05 a barrel.
- Brent crude prices have risen 25% since early last month.
- Iran claimed to have attacked 10 ships near the Strait of Hormuz.
- U.S. forces struck three Iranian oil tankers in response to Iran targeting two U.S. warships.
Benchmark Brent crude oil futures surpassed $100 a barrel for the first time since late May, reaching a significant symbolic level amid escalating conflict in the Middle East that has fueled concerns about regional oil flows. Brent crude futures settled up $3.29, or 3.4%, at $101.21 a barrel, after touching a high of $101.58. U.S. West Texas Intermediate crude was up $3.02, or 3.25%, at $96.05 a barrel. Both benchmarks closed at their highest since May 22.
Since late May, oil benchmarks have generally traded well below the $100-per-barrel psychological threshold, reflecting expectations that the conflict would remain on a low simmer. Brent crude prices have increased by 25% since early last month as hopes for a resolution to the U.S.-Iran conflict diminish. The ongoing exchanges, including Houthi attacks on Saudi energy facilities and Iran's claims of striking ships near the Strait of Hormuz, threaten to disrupt crude shipments.
Iran claimed it attacked 10 ships around the Strait of Hormuz after U.S. forces destroyed five Iranian tankers. U.S. Central Command stated it struck three Iranian oil tankers on Saturday in response to Iran targeting two U.S. warships. Iran has vowed that future retaliations will be 'faster, heavier and more painful.'