US-Iran Conflict Drives Brent Crude Prices Above $100 Barrel

Brent crude oil prices have remained above $100 per barrel amid escalating tensions between the US and Iran, reigniting fears of global energy supply disruptions.

Following consecutive US military strikes against Iran, Brent crude eased 0.63 percent to $100.10 per barrel at 9:43 am.

Stephen Innes, Managing Partner of SPI Asset Management, warned that the escalation largely rests with Iran now, and if Tehran or its Houthi proxies continue attacking ships in the Strait of Hormuz or the Red Sea, the US is likely to retaliate.

Innes noted that higher oil prices would lead to more expensive petrol and diesel, and predicted that Brent prices could range between $95 and $105 over a two-week horizon. However, he also warned that if the conflict escalates further, prices are likely to rise until they reach demand destruction at around $120 per barrel.

Rystad Energy's Janiv Shah said the direction of prices will depend on three factors: whether crude flows into Asia can be maintained, whether refiners can adapt to a changing mix of crude grades, and how geopolitical developments unfold.