Brent crude rose close to $100 a barrel on Wednesday as escalating tensions between the US and Iran heightened concerns over potential disruptions to global oil supplies, particularly through the strategic Strait of Hormuz.
International benchmark Brent crude futures for November delivery were trading at $99.48 a barrel at 09.49 a.m. local time (0649 GMT), up 1.6% from the previous close of $97.92.
US benchmark West Texas Intermediate (WTI) crude futures for October delivery increased 1.4% to $94.34 a barrel from $93.03.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Wednesday its naval forces targeted two US vessels and eight oil tankers in the Persian Gulf, claiming the attacks inflicted heavy damage on the vessels.
In a statement, the IRGC said the strikes were “carried out in response to US aggression, including an attack on five Iranian oil tankers in the Persian Gulf.”
The IRGC did not identify the US vessels or oil tankers it said were targeted, nor did it provide details on when the attacks took place.
Separately, US Central Command (CENTCOM) said American forces destroyed five Iranian crude oil carriers after the IRGC targeted a US Navy warship with ballistic missiles twice over the past two days.
The developments came amid heightened tensions between Iran and the US over the Strait of Hormuz, despite the signing of a memorandum to reopen the strategic waterway as a prelude to a wider peace deal.
Concerns over a wider regional conflict were also fueled by Iran's ballistic missile attack on a US military base in Jordan and attacks by Iran-backed Houthi forces on energy and economic facilities in southern Saudi Arabia.
As geopolitical tensions intensified in the region, investors began pricing in the risk of potential supply disruptions, pushing Brent crude closer to the $100-a-barrel threshold.
Analysts have also started revising their oil price forecasts higher on expectations that the Middle East crisis could extend into 2027. Markets do not expect a full return to pre-war oil shipment levels before late in the first quarter or early in the second quarter of 2027.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr
