Brent crude briefly traded at $100 a barrel on Wednesday for the first time since July, as fighting tied to the wider Middle East conflict raised fears of a prolonged disruption to global oil supply. Brent rose as much as 2.3% during the session before easing slightly, while both Brent and U.S. crude are now up more than 60% so far this year.
What is driving oil prices back toward $100 a barrel?
Traders pointed to a string of escalating incidents: the United States striking Iranian oil tankers, Iran vowing retaliation against energy infrastructure across the region, and Iran-backed Houthi forces attacking targets inside Saudi Arabia. Each development has added a risk premium to oil markets already on edge over the possibility that a wider war could choke off tanker traffic through the Persian Gulf.
Brent futures had already climbed to $98.06 a barrel on September 7, their highest point since late July, before the latest run toward the $100 mark. Analysts tracking the market said prices are reacting less to any confirmed supply loss so far and more to the chance that continued strikes on tankers or export terminals could take barrels off the market with little warning.
How is the price surge reaching consumers?
Higher crude prices typically show up at the gas pump within one to two weeks, and energy analysts have said pump prices are likely to climb further if Brent holds near $100 a barrel. The increase adds fresh pressure on inflation just as the Federal Reserve prepares to weigh its next interest rate decision.
Sources: CNN Business · Yahoo Finance
