Brent Crude Surges Above $100 Amid US-Iran Tensions

Brent crude futures have topped $100 for the second consecutive session as tensions between the US and Iran threaten supply.

The international benchmark, which tracks Brent crude futures for November delivery, held at $100.71 a barrel on Thursday, retreating 0.5% from its previous close of $101.21.

This comes after hostilities intensified around the Strait of Hormuz, a vital chokepoint that handles approximately 20 million barrels of crude oil and petroleum products daily. Vessel traffic through the strait has declined significantly since Tehran announced its closure on August 12, citing US attacks.

US Secretary of State Marco Rubio warned that Iran would face an economic cost if it continued attacking US warships, stating that four Iranian tankers had been damaged and another sunk overnight. IRGC spokesman Brig. Gen. Hossein Mohebbi said Tehran had expanded its control over maritime traffic beyond the Strait of Hormuz.

The EIA is scheduled to release commercial crude oil inventory data on Thursday, which traders will scrutinize for further signals on supply tightness. Analysts warned that disruptions to oil flows from the Persian Gulf could persist as long as military exchanges continue.