Oil Price Today (September 9): Crude oil at $99 as Iran attacks US base in Jordan. Can liquid gold hit $120?
Oil markets reacted sharply on Wednesday as Iran renewed its assaults on U.S. military installations. Strikes by the Revolutionary Guards on American destroyers and a Jordanian base marked a direct counter to U.S. attacks on their oil tankers. Analysts caution that should shipping turmoil escalate, oil prices might spike to $120 per barrel, intensifying fears over crude supply stability worldwide.
Oil prices surged for the fourth straight day on Wednesday, surging more than $1 in early trading following Iran's fresh attacks on U.S. military assets in the Gulf. The conflict between Washington and Tehran escalated across the region. Iran's Revolutionary Guards claimed they targeted two U.S. destroyers and a base in Jordan's Al Azraq using ballistic missiles, as retaliation for U.S. strikes on Iranian oil tankers.
Brent crude futures jumped $1.57, or 1.6%, to $99.49 per barrel, while U.S. West Texas Intermediate crude rose $1.60, or 1.72%, to $94.63 per barrel. Brent has climbed by a quarter since early August due to dwindling hopes for a permanent resolution to the six-month-long war and the recent intensification of fighting.
U.S. Secretary of State Marco Rubio stated that Washington would persist in targeting Iranian oil tankers in response to any attempts on U.S. warships. Iran continues to attempt striking U.S. naval ships, and for each such attempt or success, they will suffer losses, Rubio told reporters during a visit to Colombia.
On September 8, U.S. Central Command reported that its forces had destroyed five Iranian crude oil carriers after attempted missile attacks on a U.S. Navy warship over the previous two days. Jordan's air-defense systems intercepted 18 out of 20 ballistic missiles launched from Iranian territory, with the remaining two falling in uninhabited areas, according to the country's state news agency. No casualties were reported.
Analysts warn that oil prices could reach $120 per barrel if attacks on shipping in the Middle East escalate further, raising concerns about potential disruptions to crude supplies. Goldman Sachs predicts a significant upside for crude oil prices, while also suggesting increased natural gas and refined product prices. The duration of the disruption will be crucial for the oil market, with JPMorgan estimating that each additional month of disruption could add $7 to $8 per barrel to Brent prices.
If the disruption persists for three months, the bank expects average monthly Brent prices to reach around $114 per barrel.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
