$100 Oil Prices Return Amid Escalating Gulf Tensions
Oil prices have surpassed highs not seen since early July due to increased concerns about renewed fighting in the Gulf. On Wednesday, global benchmark Brent crude exceeded $100 a barrel for the first time since then, while West Texas Intermediate, the US benchmark, jumped to $95 a barrel.
The surge came after the US destroyed several Iranian oil tankers over the weekend in response to Tehran's attempted attacks on American warships. Energy facilities in Saudi Arabia were also attacked by Iran-allied militant groups, adding to fears about constrained supplies that could put pressure on prices.
Before this escalation, oil supplies were already under strain due to traffic through the Strait of Hormuz remaining below pre-war levels, cutting off a significant portion of global oil and natural gas supply. Attacks on other Gulf nations' energy facilities have added to price pressures, squeezing global oil supplies further.
The war in Iran isn't the only factor propping up energy prices. Russia has cut back on fuel production and restricted exports after repeated attacks on its refineries in its war with Ukraine.