Oil Surges Past $100 Amid Persistent Disruption Risk
Oil prices surged on Thursday, with both major benchmarks trading at over $100 a barrel. Brent crude futures jumped 5.33% to $106.60, while US oil topped $100 for the first time since May, rising 5.37% to $101.21.
The increase was driven by concerns about disruptions to already tight supplies, following a spike in attacks on shipping since the Iran war began. The biggest attack was on Wednesday, when Iran said it had targeted 10 ships near the Strait of Hormuz after the US hit five Iranian oil tankers.
Analysts warn that the risk of further disruptions is now persistent, not episodic, and that Brent crude prices may settle into a new normal above $100. China's increased purchases in recent weeks have boosted physical crude markets, but a pullback in imports could temper market gains.
OPEC has lowered its forecast for world oil demand growth in 2026 to 380,000 barrels per day, marking the fifth straight downward revision. OPEC oil output fell by 640,000 bpd in August due to disruptions caused by the war in Iran and a US blockade on Iranian shipments.