Brent crude oil rises past $100 a barrel amid US-Iran clashes and Houthi attacks
Oil markets hit the $100 mark for the first time since late July as military strikes and missile exchanges escalate tensions in the Middle East, driving regional fuel prices up by 5p per litre.
Front-month Brent crude futures crossed the $100 per barrel level on Wednesday morning. This marks the first time since 23 July that this international benchmark has reached that threshold. US Central Command stated it destroyed five Iranian tankers on September 8 after Tehran fired ballistic missiles at a US Navy warship twice in two days. The command did not identify the vessel but noted it was not hit and continued patrolling regional waters. This action followed a similar strike on September 5 involving three damaged or destroyed Iranian tankers after missile attacks on US ships. Tehran retaliated by firing missiles at a US military base in Jordan while renewing threats to vessels in Kuwaiti and Bahraini waters. The Secretary of Iran's Supreme National Security Council indicated plans to declare an exclusion zone outside the Strait of Hormuz. Meanwhile, Houthi militants seized an island in the Red Sea, disrupting Saudi Arabia's alternative oil-export route. Average unleaded petrol prices rose by 5p per litre according to the RAC, now costing 167.17p. Diesel prices increased similarly to 188.63p. Globally, airlines face higher operating costs with Qantas reviewing seat profitability due to rising fuel bills that jumped by $610 million year-to-June.
