Oil Surpasses $100 Per Barrel Amid Ongoing Iran-US Tensions

The global price of oil has surpassed $100 per barrel for the first time since July, as tensions between Iran and the US continue to rise. The increase follows a statement by the U.S. Central Command that its forces destroyed five Islamic Revolutionary Guard Corps oil tankers.

IRGC responded with a warning to evacuate all oil tankers in Kuwaiti and Bahrani waters. Brent crude oil prices, a benchmark for global trading, climbed about 2.7%, trading at around $100.57 per barrel for November contracts.

The US-Israeli attack on Iran in late February led to a near-closure of the Strait of Hormuz, which facilitates one-fifth of global crude supply. This disruption prompted the release of hundreds of millions of barrels from emergency storage in dozens of countries.

Oil prices account for a large share of gasoline costs. The average US gas price has jumped 41% since the war broke out, reaching $4.22 per gallon. Diesel prices also hit a record high, averaging $5.94 per gallon in the US.