Oil prices climbed above $100 a barrel as renewed fighting between the US and Iran raised fresh fears of disruption around the Strait of Hormuz.
Brent crude settled at $101.21 a barrel, up 3.4%, while WTI traded near $96. Brent is now roughly 40% above pre-war levels.
Tanker Attacks Push Prices Higher
The latest move came after the US destroyed five Iranian oil tankers following attempted missile attacks on an American warship.
Iran later said it attacked two US vessels and eight oil tankers near Hormuz, while Iran-backed Houthi forces also targeted oil facilities in Saudi Arabia.
Before the war, around 20% of global petroleum passed through the Strait of Hormuz, making any disruption there a major risk for energy markets.
Could Oil Reach $120?
Goldman Sachs says prices could move above $120 a barrel if Persian Gulf exports fail to recover.
Other analysts warn that severe damage to major oil infrastructure could push prices even higher.
US consumers are already feeling the impact. Average gasoline prices reached around $4.22 per gallon, while diesel climbed to a record $5.94. Higher fuel costs could also increase transportation and food prices, adding more pressure to inflation.
Investor takeaway: Oil above $100 shows that geopolitical risk is again driving energy markets. Further attacks around Hormuz could push prices toward $120, increasing inflation pressure and creating another challenge for stocks and the Federal Reserve.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
