WTI Crude Surges Past $100 as US-Iran Conflict Escalates
WTI crude oil prices have surpassed $100 per barrel for the first time since May 19, while Brent crude has risen nearly 30% from its early August lows. The surge in oil prices is attributed to escalating US-Iran conflict, which has raised concerns about further disruptions to global energy supplies.
The Strait of Hormuz, a key route for Middle Eastern energy exports, carried roughly a fifth of global oil and gas supplies before the war. However, flows remain far below pre-war levels. The latest attacks by Iran on 10 ships near the Strait have added to concerns about disruptions.
US President Donald Trump has warned that the US could strike Iran's Pickaxe Mountain and said the conflict would likely continue beyond the November midterm elections. This has led to expectations that geopolitical tensions could support oil prices in the near term.
Analysts point out that supply concerns are also spreading to the Red Sea, where Iran-aligned Houthi militants have increased attacks against Saudi Arabia. The physical crude market remains strong, with Dated Brent trading above $100 since September 3.