Oil Prices Surge Past $100 as US-Iran Tensions Escalate
Oil prices have surpassed $100 a barrel as tensions escalate between the US and Iran over attacks on oil tankers. Brent crude futures fell 0.1% to $101.10 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.2% to $96.24 a barrel.
The price of Dated Brent benchmark, which underpins two-thirds of the world's oil supply, has held above $100 a barrel since September 3. The US Energy Information Administration (EIA) raised its oil price forecasts for this year and next, citing shrinking global inventories amid the loss of Middle East supply.
Iran's Islamic Revolutionary Guard Corps warned it would intensify its response to any further attacks after Iran said it attacked 10 vessels near the Strait of Hormuz in retaliation for the US sinking five Iranian oil tankers. Analysts predict that oil flows from the Persian Gulf are likely to remain disrupted for the foreseeable future.