LONDON — Oil prices rose past $100 (£74) a barrel on Wednesday after further strikes in the US and Iran conflict and continuing Houthi attacks in Saudi Arabia.
In back and forth attacks, the US hit five Iranian tankers in reprisal strikes after Tehran targeted one of its warships.
Brent crude, which is the global benchmark for prices, has not been as expensive since the end of July, when a ceasefire between Iran and the US collapsed.
Yemen’s Iran-backed Houthi movement also attacked oil facilities in Saudi Arabia on Tuesday and have been targeting tankers in the Red Sea.
As of 0930 GMT, Brent crude was up 2.5% at $100.39 a barrel. Benchmark US crude gained 1.9% to $94.85 a barrel.
Brent did dip back down to $99.90 a barrel, but any fresh flare-ups in the Middle East could see it pushed higher again.
The US strikes on the five Iranian tankers saw four in the Gulf of Oman linked to Iran’s Revolutionary Guards Corps (IRGC) hit as well as another near Kharg Island.
Tehran responded by launching missiles at a US base in Jordan and said it attacked two US vessels and eight oil tankers in the Strait of Hormuz.
The Houthis and Saudi Arabia have also been exchanging strikes since July after their own informal ceasefire unravelled.
Oil prices have fluctuated wildly during the Iran US war, which started on 28 February this year.
Before the conflict Brent crude had been priced at about $70 (£52) a barrel.
But the war saw the effective closure of the Strait of Hormuz, which carries 20% of the world’s oil and liquefied natural gas (LNG).
The rising costs have sparked huge price leaps in petrol around the world for motorists at the pumps.
Global shares were mostly lower in cautious trading on Wednesday as investors watched for what might happen on interest rates and the war with Iran pushed the price of oil past $100 a barrel.
France’s CAC 40 lost 1.1% in early trading to 8,224.46, while the German DAX declined 0.9% to 25,778.91. Britain’s FTSE 100 shed 0.5% to 10,761.27.
The future for the S&P 500 was nearly unchanged, while that for the Dow Jones Industrial Average lost 0.2%.
In Asian trading, Japan’s benchmark Nikkei 225 lost 0.2% to 65,142.78, while South Korea’s Kospi gained 1.4% to 7,051.64.
In Hong Kong, the Hang Seng dipped 0.2% to 25,274.96. The Shanghai Composite gained 0.3% to 3,951.51.
Australia’s S&P/ASX 200 slipped 0.1% to 8,911.40.
Taiwan’s Taiex edged 0.2% higher and the Sensex in Mumbai shed 0.9%.
Tit-for-tat strikes between Iran and the US have escalated in the past week, more than six months after the US and Israel launched attacks on Iran on 28 February..
Jordan said it had shot down 18 of the 20 Iranian missiles, while two of them fell in unpopulated areas, an official spokesperson for the Jordanian Armed Forces said.
After warning of further retaliatory strikes, Iran’s Revolutionary Guards said on Wednesday they had attacked two US vessels, eight oil tankers and 10 “non-compliant vessels” trying to pass through the Strait of Hormuz.
The latest round of escalation comes after Iran targeted a US warship with ballistic missiles, which Centcom said were “successfully evaded”. It added that no American troops were harmed during the attacks.
In response, the US said that the five Iranian oil tankers it targeted were “part of a multi-billion-dollar shadow network that funds the IRGC and its regional proxies”.
One of the ships it had struck, the M/T Riesco, sunk in the Gulf of Oman, Centcom later said, posting a video on X of the damaged vessel.
Some 90% of the country’s crude oil passes through the island in the Gulf, transported through pipes from the mainland.
Source: Saudi Gazette