For the first time in several months, Brent has once again surpassed the psychological threshold of $100 per barrel
Kyiv • UNN
Brent rose to $101.21 following attacks by Iran and the US. The market fears prolonged disruptions to oil supplies through the Strait of Hormuz.
Brent crude prices exceeded $100 per barrel and closed at their highest level since late May amid the escalation of the conflict in the Middle East. Oil prices rose after new attacks by Iran and the United States heightened concerns about disruptions to energy supplies, Reuters reports, writes UNN.
Details
Brent crude futures rose by $3.29, or 3.4%, to $101.21 per barrel. During trading, the price reached $101.58. U.S. West Texas Intermediate (WTI) crude rose by $3.02, or 3.25%, to $96.05 per barrel.
According to Reuters, the market responded to a new wave of escalation between Iran and the United States. Iran said it had attacked 10 vessels near the Strait of Hormuz, while the United States reported destroying five Iranian oil tankers.
Analysts note that the market is increasingly pricing in the risk of prolonged disruptions to energy supplies from the Middle East.
The move toward $100 for Brent and back above it reflects the fact that the market is increasingly being forced to revise its view of how long the crisis in the Middle East will continue to constrain supplies from the region
Risks to the global market are increasing
Particular concern is being caused by the situation around the Strait of Hormuz, through which about 20% of the world's oil and gas supplies passed before the conflict began.
Experts believe that the reciprocal strikes between the United States and Iran significantly reduce the chances of a swift resolution to the conflict and increase risks for the global energy market.
Since the war between Iran and the United States began in late February, Brent prices have already risen to $126.41 per barrel, but later fell below $100. Now, due to the new escalation, oil has returned to triple-digit levels.