Brent Surpasses $100 Threshold as Escalating US-Iran Tanker Conflict Intensifies Supply Concerns

Crude oil prices remained strong on Thursday following Brent's rise past the $100-per-barrel mark. Market participants are bracing for severe supply bottlenecks as the geopolitical conflict between the United States and Iran intensifies, marked by the most significant attacks on maritime shipping since the hostilities began six months ago.

Brent crude futures ticked up 0.1% to reach $101.34 per barrel by 0107 GMT, while U.S. West Texas Intermediate (WTI) crude gained 0.5%, trading at $96.55 per barrel.

The latest escalation follows Iran's announcement on Wednesday that it targeted 10 vessels near the crucial Strait of Hormuz. This action was a retaliation after the U.S. military sank five Iranian oil tankers. Iran's Revolutionary Guard Corps has warned of even stronger reactions to any subsequent actions.

Market analysts point out that these retaliatory strikes indicate prolonged disruptions to Persian Gulf energy shipments. The Strait of Hormuz, which historically facilitated about one-fifth of the world's oil and gas transport, continues to operate at significantly reduced capacities compared to pre-conflict levels.

Reflecting these supply anxieties, the U.S. Energy Information Administration (EIA) recently upgraded its oil price projections for both this year and next, citing shrinking global inventories driven by the ongoing Middle East crisis.