Brent crude crossed the US$100-a-barrel mark on Wednesday for the first time since July, as a fresh wave of attacks in the Middle East heightened fears that an already fragile global oil supply chain could face further disruption.
Benchmark Brent crude futures climbed as much as 2.57% to US$100.40 a barrel, while US West Texas Intermediate (WTI) rose 2.10% to US$94.98. Brent had earlier touched US$100.19 before easing to around $99.93 a barrel by 0802 GMT,
according to Reuters.
The latest jump comes as the six-month-old US-Iran conflict shows few signs of a lasting settlement. Brent has gained about 25% since early August, with concerns over the security of major oil routes increasingly driving prices higher.
The latest escalation has added another layer of risk to the market. Iran-backed Houthi fighters attacked energy facilities in Saudi Arabia this week, setting oil installations ablaze and raising concerns over potential damage to production and exports. The attacks have also increased the threat to shipments travelling through the Red Sea, an important alternative route to the Strait of Hormuz.
The Strait of Hormuz has emerged as the biggest flashpoint for the global oil market since the conflict began. Before the war, nearly one-fifth of the world's oil supply moved through the strategic waterway. Commercial traffic through the route has since been severely curtailed, putting additional pressure on supplies and forcing traders to factor in the risk of prolonged disruption.
US-Iran Tensions Deepen
The oil market was already under pressure after the US struck five Iranian oil tankers following attempted missile attacks on a US Navy warship, according to reports.
Iran subsequently launched missiles at US-linked targets in Jordan. Iran's Islamic Revolutionary Guard Corps said it had targeted a US military base in Jordan as well as vessels in and around the Strait of Hormuz.
Jordanian officials, however, said its air-defence systems intercepted 18 of the 20 missiles fired from Iran, with the remaining two landing in unpopulated areas.
The exchanges have further weakened expectations of an imminent end to the conflict.
US secretary of state Marco Rubio, speaking during a visit to Colombia, warned that Washington would continue targeting Iranian oil tankers if Tehran attempted further attacks on US naval vessels.
The escalation has been accompanied by tighter US economic sanctions. Washington on Tuesday imposed fresh sanctions targeting parts of Iran's aviation industry, including more than two dozen commercial and private airlines and foreign cargo service providers.
The measures form part of president Donald Trump's broader strategy of combining military pressure with economic restrictions in an effort to isolate Tehran.
Global Supply Outlook Worsens
The oil market is also facing a weaker supply outlook. While producers outside OPEC, including the US, Canada and Guyana, have increased output, the International Energy Agency said last month that global oil supply could decline by 4.3mnbpd (million barrels per day) this year, equivalent to about 4%.
That projected decline is adding to the market's sensitivity to any disruption in the Middle East, particularly at a time when key shipping routes remain under threat.
According to analysts, some of the rise in prices had been limited by continued US efforts to move non-Iranian oil through the Strait of Hormuz and expectations of a possible shipping arrangement involving Iran and Oman.
But the wider direction remains heavily dependent on developments in the conflict.
Higher Oil Prices Could Fuel Inflation
A sustained move in crude prices above US$100 could have consequences well beyond the oil market. Higher crude prices typically feed into the cost of petrol, diesel and aviation fuel, increasing transport expenses for consumers and businesses. The impact can then spread to goods transported by road, sea and air, potentially pushing up prices for everything from fresh food to furniture and household appliances.
The renewed surge in energy prices also comes at a sensitive time for central banks, which are already assessing how higher energy costs could affect inflation.
Brent's latest rise has also put renewed attention on the economic and political consequences for the US administration ahead of the November midterm elections.
Despite the latest surge, oil prices remain below the peak reached earlier in the conflict. Brent climbed as high as US$126.41 a barrel on 30 April 2026.
For now, however, traders are focused on whether the latest attacks remain contained or develop into a wider confrontation capable of disrupting production and shipping across the Middle East. With the Strait of Hormuz effectively restricted and the Red Sea facing fresh security risks, even a limited escalation could keep crude prices elevated and add to inflationary pressures worldwide.
