Brent crude rose to $100 per barrel following new clashes between the U.S. and Iran

Prices for Brent crude, the benchmark grade, exceeded $100 per barrel during trading on Wednesday, September 9. November futures rose by more than 2% and were trading above that level at the time. CNBC notes that the last time they reached this level was in July. Since the beginning of the year, Brent has risen by more than 60%, and this marks the third time it has surpassed $100 per barrel.

Futures contracts for West Texas Intermediate (WTI) crude oil, due for delivery in November, jumped 1.75% to $94.7 per barrel.

The escalation of tensions between the U.S. and Iran has heightened concerns about further disruptions to energy supplies from the Middle East through the Strait of Hormuz, according to CNBC. On Tuesday, the U.S. military destroyed five Iranian tankers carrying crude oil in response to attempts to attack a U.S. warship. In addition, the conflict has spread to the Red Sea, where an alternative

Prices are also being supported by rising purchases from China, the world's largest importer of hydrocarbons, according to Bloomberg. The agency believes that the lull in purchases was one of the key factors holding prices back during the early stages of the conflict in Iran.

Taken together, this growth threatens to trigger a new wave of inflationary pressure that central banks around the world will have to contend with, according to Bloomberg.

“The most likely scenario is a steady, gradual rise in prices as the war enters its seventh month,” predicts Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets. “The fundamental picture remains favorable for rising prices of petroleum products amid a decline in global inventories and reserves.”

This news story is being updated.

This article was AI-translated and verified by a human editor