Oil tops $100 as Middle East crisis deepens

International oil prices surged above the $100 per barrel mark on Thursday, intensifying concerns over a deepening global energy crisis as escalating military tensions in the Middle East threatened key oil shipping routes and critical energy infrastructure.

Brent crude, the global benchmark, rose 6.5 per cent to $100.17 per barrel from the previous close of $94.07, while the US benchmark West Texas Intermediate (WTI) gained 5.46 per cent to $91.54 per barrel from $86.80. Brent futures reached their highest level since May 27.

The latest rally was driven by mounting fears over potential disruptions to crude supplies following reported attacks on Saudi oil tankers, an explosion involving a vessel in the Strait of Hormuz, and heightened geopolitical tensions involving the United States, Iran and Yemen’s Houthi movement.

US President Donald Trump warned that Washington would hold Iran responsible if the Houthis launched further attacks on commercial shipping, accusing Tehran of directing the group’s actions.

The warning followed claims by the Houthis that they had attacked two Saudi oil tankers using ballistic missiles, cruise missiles and drones.

US Secretary of State Marco Rubio also urged the Houthis to avoid becoming further involved in the regional conflict, arguing that the group had been drawn into the confrontation by Iran.

Meanwhile, Iran’s military warned it could target energy facilities across the region if US attacks on Iranian infrastructure continued.

The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for attacks on US military bases in Kuwait and Jordan and reported that an oil tanker was struck by an explosion in the Strait of Hormuz, forcing two other vessels to abandon transit through a southern shipping lane that it alleged had been mined.

The developments heightened concerns over the security of the Strait of Hormuz, through which about one-fifth of global oil consumption is transported, raising fears of severe disruptions to global crude supplies.

The tensions intensified after the US military confirmed another round of strikes on Iranian military targets, marking the 12th consecutive night of operations, while Iranian media reported explosions and damage to infrastructure in the country’s southwest, including a power station near the Bushehr nuclear power plant.

Analysts said the combination of military escalation, threats to major shipping routes and growing risks to regional energy infrastructure has significantly increased the geopolitical risk premium in oil markets, with traders closely monitoring developments for further supply disruptions.