Brent Crude Surges Above $100 as US-Iran Tensions Escalate
Oil prices have surged above $100 per barrel for the first time since July following another round of strikes in the ongoing US-Iran conflict. According to officials, multiple Iranian oil tankers were targeted in response to attempted missile attacks on a US Navy warship.
As a result, Brent crude oil has risen by about 2% and briefly surpassed $100 per barrel, reaching highs not seen since late July. The price then dipped slightly to around $99.50 per barrel.
The latest escalation in the conflict weighs on hopes of a peace deal being reached this year, causing concerns among investors. Rising oil costs and disruption to supplies are also influencing fuel prices, with petrol at the pump increasing by 4.4p per litre and diesel by 4.1p per litre since September 1.
Richard Hunter, head of markets at Interactive Investor, noted that 'the outlook in the Middle East has recently worsened once more, with any signs of detente looking elusive.' Susannah Streeter, chief investment strategist at Wealth Club, added that 'the conflict appears to be becoming more entrenched, creating chronic supply concerns around crude and gas.'