Iran's Shipping Attacks Send Oil Prices Soaring Past $100
Oil prices surged above $100 per barrel on Thursday as traders evaluated the risks of supply disruptions stemming from recent shipping attacks. Iran claimed responsibility for targeting ten vessels after the US destroyed five tankers, with analysts warning that if tensions continue in the Strait of Hormuz, oil prices could escalate further to potentially reach $120 a barrel.
The Islamic Revolutionary Guard Corps warned it would intensify its response if further attacks take place, while traffic through the Strait of Hormuz remains far below pre-war levels. The key waterway carried roughly a fifth of the world's oil and gas supplies before the conflict began.
Brent crude futures rose 0.2% to $101.80 a barrel, while U.S. West Texas Intermediate crude gained 0.5% to $96.55 a barrel. Market analysts warn that if tensions continue in the Strait of Hormuz, oil prices could escalate further.