Oil Prices Soar Above $100 as US-Iran Tensions Escalate

Global oil prices have surged above $100 per barrel for the first time since July 24, as tensions between the US and Iran escalate. The Brent crude benchmark, a global standard, broke through the $100 barrier early in European trading hours, reaching $100.60 per barrel by around 5:45 a.m. ET.

The move above $100 was driven by concerns over disruptions to oil shipments through the Strait of Hormuz, a critical waterway that connects the Persian Gulf to the Red Sea. The US military's attack on Iranian tankers and the subsequent retaliation by Iran-backed Houthi militants in Saudi Arabia have added to the uncertainty.

Despite increased output from major producers such as the US, Canada, and Guyana, global oil supply is expected to fall by 4.3 million barrels a day this year, or roughly 4%, according to the International Energy Agency. This has prompted major banks like Goldman Sachs, Bank of America, and HSBC to raise their price forecasts in recent days.