Iran-US Tensions Send Oil Prices Soaring Past $100 Barrier

Oil prices have surged past $100 a barrel as tensions escalate between Iran and the United States. Brent crude futures inched lower by 0.1% to $101.10 a barrel, while US West Texas Intermediate crude was at $96.24 a barrel, up 0.2%. The price surge comes after Iran attacked 10 ships near the Strait of Hormuz, following the US's sinking of five Iranian oil tankers.

Analysts say that the tit-for-tat attacks suggest that oil flows from the Persian Gulf are likely to remain disrupted for the foreseeable future. Oil flows through the Strait of Hormuz have been far below pre-war levels, and the continued disruptions are keeping physical markets tight and supporting a geopolitical risk premium in oil prices.

The US Energy Information Administration has raised its oil price forecasts for this year and next, citing the loss of Middle Eastern supply and global stockpile drops. Brent prices have surged nearly 30% from lows touched in early August, as a permanent agreement between the US and Iran to cease attacks never materialised.