Brent crude surges above $100 after US, Iran’s biggest tanker attacks

Global oil prices continue to rise above the $100 mark after Wednesday’s increase of $101.20 for the first time since July 24, 2026, amid an escalating Middle East crisis.

According to Reuters, this followed an Iranian attack on 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers, in what appears to be the biggest wave of attacks on shipping by both sides since the start of the six-month-old war.

Brent crude breached $100 a barrel, with the international benchmark rising to $102.5 per barrel, an increase of $1.38 compared to Wednesday, while US West Texas Intermediate (WTI) also traded $1.51 higher at $97.58 per barrel as of the time of this report.

The crude prices were headed for their biggest daily percentage rises since September 1, while Brent has surged as high as $126.41 a barrel, a peak reached on April 30, since the US-Iran war escalated on February 28.

What they are saying

According to Reuters, Ole Hansen, head of commodity strategy at Saxo Bank, said crude oil prices moving above $100 show a market increasingly focused on how long the Middle East crisis will affect supply from the region.

• “The move towards and back above $100 Brent is reflecting a market that increasingly has to change its view on how long the Middle East crisis will continue to curb supply from the region.”

Senior climate and commodities economist at Capital Economics, Hammad Hussain, said market participants appear to be pricing in a more prolonged conflict and the risk that further military strikes could disrupt oil flows from the Middle East.

• “Market participants appear to be pricing in a more prolonged conflict in the Middle East as well as the risk that the latest escalation in military strikes disrupts oil flows from the Middle East.”
• “The key risk is whether the recent attacks on oil tankers lead to fewer ship-to-ship transfers taking place in the Gulf of Oman, which have so far played a key role in providing oil to global markets and keeping a lid on prices.”

The latest comments highlight the market’s growing focus on the duration of the conflict and its impact on oil supplies.

Get up to speed

Energy markets remain highly sensitive to disruptions in the strategic Strait of Hormuz, where a large share of global crude oil transits, with the latest escalation in the US-Iran crisis pushing oil prices from about $75 per barrel in July to above $100 per barrel currently.

• In a sharp escalation of the six-month-old war in recent days, US forces hit multiple Iranian oil tankers, while Iran targeted a US base in Jordan and attacked ships.
• Yemen’s Iran-backed Houthi group has also attacked four cities in southern Saudi Arabia, including targets linked to the country’s state-owned oil company, affecting energy infrastructure.
• The attacks threaten crude shipments through the Red Sea, which has been a key alternative route to the crucial Strait of Hormuz.

Oil flows through the Strait of Hormuz have been severely curtailed, with the latest attacks raising concerns about further disruptions to global supplies.

According to Rystad Energy’s Chief Economist Claudio Galimberti, roughly 8 million to 9 million barrels per day flowed through Hormuz in the week before hostilities between the US and Iran resumed on August 30, double the previous week’s volume. More recently, flows have fallen below 2 million barrels per day.

The sharp decline in flows underscores the sensitivity of global oil markets to developments around the Strait of Hormuz and other key shipping routes.

What you should know

In a related development, Nairametrics reported a few days ago that oil prices rose closer to $100 per barrel, with Brent crude climbing to $96.98 per barrel as Iran continued striking US Gulf allies, while Kuwait intercepted incoming missiles and drones.

• The international benchmark crude had earlier crossed the $97 per barrel mark, while US West Texas Intermediate (WTI) traded 21 cents higher at $91.22 per barrel.
• According to CNBC, Kuwait’s armed forces said on Thursday that the country was facing “ongoing Iranian aggression” as its air defences engaged missiles and drones.

The latest rise above $100 represents a further increase in oil prices as the conflict continues to raise concerns over crude supply and shipping routes in the Middle East.