Key facts
- Brent crude futures briefly topped $100.07 per barrel on Wednesday.
- WTI crude futures approached $95 per barrel.
- Escalating Middle East conflict and fears of supply disruptions are driving prices.
- US forces destroyed five Iranian crude oil carriers.
- Iran fired ballistic missiles toward Jordan.
- Houthi militants continued targeting energy infrastructure.
Oil prices surged past the $100 per barrel mark on Wednesday, reaching their highest level since July 24, as escalating Middle East tensions diminished hopes for a swift return to normal oil flows. The international benchmark, Brent Crude, briefly reached $100.07 before pulling back to around $99.90. The U.S. benchmark, WTI Crude, also rallied, approaching $95 per barrel.
The price rally was triggered by renewed hostilities, including U.S. military actions against Iranian oil tankers and retaliatory missile firings by Iran towards Jordan. Iran-aligned Houthis also continued targeting energy infrastructure in the region. US forces destroyed five Iranian crude oil carriers, with Centcom stating it was in response to Iran targeting a US Navy warship. Iran subsequently fired ballistic missiles toward Jordan, which intercepted most of them without casualties.
ING commodities strategists Warren Patterson and Ewa Manthey noted that the market is likely to continue pricing in a sizeable risk premium amid the ongoing conflict.