Brent Crude Tops $100 a Barrel for First Time Since July as US-Iran Strikes Escalate

Brent crude futures crossed the $100-per-barrel threshold on Wednesday for the first time since late July, driven by a sharp new escalation in fighting between the United States and Iran in the Persian Gulf. U.S. forces struck multiple Iranian oil tankers overnight, Iran targeted a U.S. base in Jordan and attacked ships in the region, and Iranian-backed Houthi rebels in Yemen launched fresh strikes on Saudi energy infrastructure, deepening fears about global oil supply.

Brent has risen more than 60% this year and surged roughly a quarter since early August alone, as hopes for a lasting resolution to the now six-month-old conflict faded. Tehran's attacks on ships in the Strait of Hormuz have weighed heavily on tanker traffic through the critical waterway, which channels a significant share of global crude exports. Iran also struck ships in what the Barron's report described as a direct naval engagement, adding a new dimension to the conflict.

Goldman Sachs commodities analysts warned that Brent could exceed $120 per barrel if Persian Gulf oil flows remain depressed, specifically citing a scenario in which crude output in the Gulf stays 4 million barrels per day below prewar levels into 2027. The bank's base case remains for exports to gradually recover as producers adapt, but analysts described $120 oil as "definitely plausible." Refined products such as diesel have risen even more sharply than crude, and U.S. gasoline prices climbed to their highest level since early June.