Brent settles at over US$100 a barrel as Middle East conflict intensifies
Both oil benchmarks closed at their highest since May 22
Brent crude futures soared above US$100 a barrel on Wednesday, reaching their highest close since late May after Iran and the US targeted shipping vessels. The front-month Brent crude futures increased by US$3.29, or 3.4 percent, to US$101.21 a barrel, after peaking at US$101.58. West Texas Intermediate crude rose by US$3.02, or 3.25 percent, to US$96.05 a barrel.
The market has been increasingly concerned about the potential for a prolonged supply disruption in the Middle East, particularly after Iran resumed attacks on tankers near the Strait of Hormuz. Shipping volumes through the critical strait have dropped significantly, falling below 2 million barrels per day in recent weeks. The attacks have raised worries about the possibility of fewer ship-to-ship transfers in the Gulf of Oman, which has helped keep oil prices stable.
The US Energy Information Administration has also revised its oil price forecasts upward, projecting higher prices for this year and next.
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