Crude Oil Prices Near $100 Amid Escalating Tensions Between Iran and US

Crude oil prices have been on an upward trend in recent days, nearing the $100 mark amid escalating tensions between Iran and the United States. The conflict has led to a series of attacks on vessels in the Strait of Hormuz, further tightening market supply. In fact, Kazakhstan temporarily reduced its production after taking its main export pipeline offline.

The Brent crude futures price dropped 72 cents, or 0.72 per cent, to $99.97 a barrel at 01:26 GMT, but still remains on track for a 13.5 per cent gain this week. The US West Texas Intermediate (WTI) crude fell 70 cents, or 0.76 per cent, to $91.49 a barrel, which is pointing to a 10.9 per cent weekly increase.

Both benchmarks surged in the previous session, with Brent settling 7 per cent higher and WTI gaining 6.2 per cent on Thursday. It was the first time Brent had closed above $100 since May.

The Japanese government has warned that the conflict is hurting its economy, particularly due to disruptions in the Strait of Hormuz. The country relies heavily on fuel imports from the Middle East and has been forced to dip into its reserves to avert an energy crisis.