Oil reached $100 a barrel for the first time since May as fighting in the Middle East and Houthi attacks on tankers revived fears over global energy supplies. Brent crude rose more than 5% on Thursday, and Goldman Sachs warned prices could climb further if key shipping routes stay disrupted.
Oil hit $100 a barrel for the first time since May as escalating conflict in the Middle East reignited fears over global energy supplies. Brent crude, the global benchmark, rose more than 5% on Thursday after several days of gains as the US stepped up military strikes against Iran.
Houthi attacks widen the supply threat
Prices spiked after Houthi militia attacked oil tankers in the Red Sea, threatening a key export route that Saudi Arabia has used to bypass the Strait of Hormuz. The group struck two Saudi tankers, pushing crude higher for a fifth straight day across both the Red Sea and the strait.
Iran's Islamic Revolutionary Guards Corps said three tankers abandoned an attempt to pass through Hormuz after an explosion aboard one of them set it on fire. Diplomacy has stalled too: a temporary ceasefire between the US and Iran failed, and Secretary of State Marco Rubio said this week the people running Iran were "not ready to make a deal".
How far prices have moved
Brent futures were up 6.2%, at $99.90 a barrel by 1310 GMT, after touching $100 for the first time since late May. US West Texas Intermediate crude rose 5.08%, to $91.24, above $90 for the first time since June 11.
Beyond crude, UK gas prices have risen steadily over the past month. The benchmark now sits at around 150 per therm, up from about 98p per therm on 26 June.
What forecasters expect next
Goldman Sachs said Brent might exceed $120 a barrel in Q4 and average $100 next year if the Strait of Hormuz stays disrupted through 2027. The US military said it had completed a 12th consecutive night of attacks on Iran, hours after President Donald Trump vowed to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz.
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