Brent crude oil, the international standard, is back above $100 U.S. per barrel as the U.S. and Iran continue to trade strikes in and around the Strait of Hormuz shipping route.
This is the first time that crude prices have been above $100 U.S. since July of this year and comes as commodities traders grow concerned about disruptions to Middle East oil supplies.
Brent crude oil was up nearly 3% and trading at $100.39 U.S. a barrel early on Sept. 9. West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is up 2% at $94.86 U.S. a barrel.
Oil prices are trending higher amid reports that the U.S. military destroyed five Iranian crude tankers in retaliation for attempted attacks on an American warship.
There are also reports that the Iran-backed Houthi militia is close to all-out war with Saudi Arabia after attacks on that country’s oil infrastructure.
Analysts say that the increased fighting in the Middle East has raised the chances that crude oil shipments out of the region will fail to recover in coming months.
The flare-up in violence between the U.S. and Iran comes after the two side had paused military strikes against each other for much of August.
The administration of U.S. President Donald Trump had said they were pivoting to economic pressure and sanctions on Iran and ending combat operations in the Middle East.
However, the U.S. has now returned to regular military strikes on Iran and its infrastructure.
The escalating tensions and rising crude prices continue to push the stocks of oil companies higher, with Chevron’s stock gaining 8% in the last month to trade at $209.80 U.S. per share.
Chevron’s stock is now up 35% this year, matching similar gains among other oil majors.
Related Stories
