Brent Crude Surges Above $101.10 Per Barrel Amid US-Iran Shipping Attacks
Oil prices jumped 30% since mid-August as Iran and the US resumed mutual shipping attacks in August.
Brent crude oil closed at $101.10 per barrel on Thursday, rising 0.1% after breaching the $100 mark. The surge represents a 30% increase from Brent's lowest level in early August. Prices remain high because Iran and the United States have resumed major shipping attacks. Iran said it attacked ten vessels near the Strait of Hormuz after US forces sank five Iranian oil tankers. Tehran's Revolutionary Guard promised to escalate its response if further attacks occur. Meanwhile, Western Texas Crude rose 0.2% to $96.24 per barrel. These developments have reignited concerns that a new energy price shock could impact European economies, which rely heavily on imported gas and oil. The European Central Bank is scheduled to consider raising interest rates for the second time this year due to inflation driven by rising energy costs. While the US and Iran had been in a period of relative calm since late August, their renewed military attacks have ended that stability. Economists warn that without a permanent agreement to stop the attacks, price volatility will continue.
