Oil hits $100 a barrel for first time since July after US and Houthi strikes

Oil prices surged past $100 a barrel on Wednesday after additional attacks in the US and Iran conflict, as well as ongoing Houthi assaults in Saudi Arabia. The US retaliated against five Iranian tankers in response to Tehran hitting one of its warships. Brent crude, the global benchmark for oil prices, had not reached such a high level since the end of July, when an Iran-US ceasefire fell apart.

Meanwhile, Houthi rebels from Yemen launched strikes on oil facilities in Saudi Arabia on Tuesday, and have been targeting tankers in the Red Sea. Despite a temporary dip to $99.90 a barrel, any future flare-ups in the Middle East could push the price higher again. The US strikes on the five Iranian tankers included four from the Gulf of Oman that targeted the Revolutionary Guards Corps (IRGC) and another near Kharg Island.

Iran retaliated by firing missiles at a US base in Jordan, most of which were intercepted, and stated that it had attacked two US vessels and eight oil tankers in the Strait of Hormuz. The escalation of tit-for-tat strikes between Iran and the US has continued for over six months since the US and Israel initiated attacks on Iran on February 28.

The latest wave of escalation occurred after Iran targeted a US warship with ballistic missiles, which Centcom reported as being "successfully evaded". In retaliation, the US targeted five Iranian oil tankers, with one sinking in the Gulf of Oman. Kharg Island, where one Iranian tanker was attacked in the most recent US strikes, is the primary terminal for Iran's oil exports, with 90% of the country's crude oil passing through the island via pipes from the mainland.

The rising oil costs have led to significant fluctuations in retail prices worldwide for motorists. US Secretary of State Marco Rubio clarified that Iran keeps attempting to hit US naval ships, and for each incident, Iran will lose tankers.