Oil Prices Soar to Near $100 per Barrel Amid Escalating US-Iran Tensions

Oil prices surged on Wednesday as tensions between the US and Iran escalated, pushing Brent crude near $100 per barrel. The price hike follows a series of attacks by Iranian forces on US naval assets and shipping vessels in the Gulf.

The latest gains came after the US military reported it had destroyed five Iranian oil tankers following missile attacks by Iranian forces. In response, Tehran launched missiles at US targets in Jordan and warned Gulf states against supporting US forces.

ING analysts noted that despite the escalation, estimates of oil flows through the Strait of Hormuz have edged higher, with flows now believed to be around 10 million barrels per day, roughly 50% of pre-war levels.

Goldman Sachs warned that crude prices could rise as high as $120 a barrel if attacks on Middle Eastern vessels intensify and shipping disruptions worsen. Iraq is also seeking an increase in its OPEC+ oil production quota, with a target of 6 million barrels per day.