Oil Prices Remain Above $100 amid Increased US-Iran Attacks

Prices of oil were holding steady above the $100-per-barrel level on Thursday, September 10, with increased tension between the U.S. and Iran adding more concerns about crude oil disruption due to the ongoing six-month-old war. 

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Oil futures of Brent crude gained 0.1% to trade at $101.34 per barrel. West Texas Intermediate (WTI) crude gained 0.5%, and it was being traded at $96.55 per barrel. 

While the increase in the price levels was minimal, there has been an intensification of the ongoing war, with Iran and the US conducting their biggest attacks on the shipping routes since the start of the war. 

Attacks Near Strait of Hormuz Intensify 

Iran said it attacked 10 ships near the Strait of Hormuz on Wednesday after the U.S. sank five Iranian oil tankers. 

Iran’s Revolutionary Guard Corps also warned that its response would escalate if further attacks were carried out. 

The developments have put the Strait of Hormuz back at the centre of concerns over global energy supplies. Before the war, roughly one-fifth of the world’s oil and gas supplies passed through the waterway. 

Flows through the strait remain well below the levels recorded before the conflict began. 

That leaves the oil market facing a familiar problem, but with greater urgency: a key supply route is already operating below normal levels while attacks involving tankers and commercial shipping are becoming more intense. 

U.S. EIA Raises Oil Price Forecasts 

The changing supply picture has also prompted the U.S. Energy Information Administration (EIA) to revise its outlook. 

On Wednesday, the agency raised its oil price forecasts for both this year and next. The revision comes as global oil inventories decline following the loss of supplies from West Asia. 

For crude markets, the latest round of attacks adds another layer of uncertainty to an already disrupted supply environment. 

Brent’s move above $100 has therefore come alongside a broader concern over how much oil can continue moving out of the region if the conflict spreads further across major shipping routes. 

With Iran warning of a stronger response to additional attacks and oil flows through the Strait of Hormuz still running below pre-war levels, supply disruptions remain firmly in focus as Brent trades above $101 a barrel.