Iran war live: US hits Iranian tankers, IRGC attacks US base in Jordan

On Wednesday, September 9th, the price of Brent crude oil futures breached the $100 per barrel mark for the first time since July 24, reaching a six-week high. This surge in oil prices is attributed to heightened concerns over oil flows from the Middle East due to escalating conflict in the region. Brent crude futures increased by $2.01, or 2.05%, to $99.93 a barrel by 8:02am GMT, while US West Texas Intermediate crude rose by $1.49, or 1.60%, to $94.52 a barrel.

Brent crude prices have risen by a quarter since early last month, anticipating a permanent resolution to the six-month-old US-Iran conflict. However, the conflict shows no signs of abating, with the war starting on February 28th. The Iran-backed Houthis have been attacking Saudi energy facilities, setting oil installations ablaze and threatening a significant escalation of the conflict.

These attacks also pose a risk to crude shipments via the Red Sea, which has become an alternative route to the crucial Strait of Hormuz, where oil flows have been severely limited since the conflict began. Market participants are pricing in a more prolonged conflict and the risk of disruption in oil flows from the Middle East, according to Hamad Hussain, a senior climate and commodities economist at Capital Economics.