Oil Prices Cross $100 Barrier as US-Iran Attacks Paralyse Hormuz Strait Tanker Routes
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Summarized by AI; it may make mistakes. Check important info
Crude oil prices surged to $99.49 a barrel in early trading on Wednesday as the United States and Iran escalated their military conflict with a series of reciprocal tanker strikes and missile fire across the Middle East.
Global benchmark Brent crude surged past $100 a barrel on Wednesday following fresh military strikes between the United States and Iran that severely disrupted commercial shipping and tanker transits through the Strait of Hormuz.
Energy markets experienced widespread buying momentum on Wednesday as reports of targeted military strikes on commercial vessels and energy facilities unnerved international commodity traders. Brent crude futures jumped 2.57 per cent to trade at $100.44 per barrel as of 5:11 a.m. ET, crossing the key psychological century mark. Meanwhile, US West Texas Intermediate (WTI) futures for November delivery advanced 2.03 per cent to trade at $94.92 a barrel.
US Central Command reported that the targeted vessels—M/T Kaviz, M/T Charminar, M/T Horizon 1, M/T Riesco, and M/T Derya—were rendered inoperable after crews were directed to abandon ship.
:U.S. warship successfully evaded the attempted Iranian attacks and continued to patrol regional waters. No American personnel were harmed," in a statement by US military.
Iran retaliated swiftly as State broadcaster IRIB confirmed the strikes and reported missile fire directed at the Al Azraq military base in Jordan, where US forces are stationed, as per Jazeera.
Jordan’s Armed Forces reportedly confirmed that national air defences intercepted 18 out of 20 ballistic missiles fired during the attack. No casualties were reported, and specialized teams secured the areas where debris fell.
Widening Regional Conflict
The exchange marks a dangerous escalation six months into the ongoing war involving the US, Israel, and Iran. Tehran has closed the Strait of Hormuz, while Washington continues to enforce a naval blockade against Iranian ports.
Following the destruction of its tankers, the IRGC claimed additional missile attacks on US Navy destroyers DDG-119 and DDG-53, alongside strikes targeting two US vessels and eight regional tankers that caused significant damage. Verification of the damage to the American destroyers remains unconfirmed, with no immediate comment from Washington, Al Jazeera reported.
Earlier warnings from the IRGC cautioned that oil tankers near the borders of Bahrain and Kuwait faced imminent attacks, urging all crews to evacuate immediately.
Diplomatic and Legal Repercussions
Defending the military operations during a visit to Colombia, US Secretary of State Marco Rubio stated that Washington will not back down. "Iran continues to try to hit US naval ships, and for every time they do that or try to do that, they’re going to lose tankers," Rubio told reporters.
Iran’s Ministry of Foreign Affairs condemned the US strikes as a violation of the United Nations charter, labelling the military actions a war crime and part of an ongoing economic war.
