Oil Prices Soar Past $100 Amid Ongoing Iran-US Conflict
Oil prices have surged past $100 per barrel as tensions between Iran and the US escalate, disrupting global oil supplies. On Thursday, Brent crude futures rose 0.1% to $101.34 a barrel, while US West Texas Intermediate crude was at $96.55 a barrel, up 0.5%. The Strait of Hormuz, which carries roughly a fifth of the world's oil and gas supplies, remains severely impacted by the conflict.
The US Energy Information Administration raised its oil price forecasts for this year and next due to the loss of West Asian supply, citing global stockpiles dropping as a result. Analyst Daniel Hynes of ANZ warned that 'the broadening of the conflict threatens to risk even deeper disruption to oil supplies.' The Iran Revolutionary Guard Corps has stated it will escalate its response to any further attacks.
The situation is expected to remain volatile with no end in sight, leaving oil markets scrambling to adjust to the ongoing disruptions. As a result, oil flow through the Strait of Hormuz remains well below its pre-war level.