Oil Prices Surge Past $100 as US-Iran Conflict Enters Seventh Month

The ongoing military conflict between the United States and Iran around the Strait of Hormuz has driven international oil prices up more than 3% on Wednesday, breaching the $100 threshold for the first time since late May. Brent crude settled at $101.21 per barrel, while West Texas Intermediate rose to $96.05 per barrel.

U.S. President Donald Trump stated that he believes oil prices won't fall significantly until after the November midterm elections. Taiwanese scholars agree, citing an intractable deadlock between the two nations' demands as a major obstacle to ending the war and thus preventing a substantial decline in oil prices.

Ole Hansen, head of commodity strategy at Saxo Bank, said Brent's move back above $100 reflects the market reassessing that the Middle East crisis may suppress regional supply for longer than originally anticipated. The Strait of Hormuz handled approximately one-fifth of global oil and natural gas transportation before the war, with recent transit volumes plummeting from 8-9 million barrels per day to under 2 million barrels per day.