The Commodities Feed: Brent breaks above $100/bbl amid US-Iran escalation

Brent crude oil surged above the $100 mark on Wednesday, marking the first time since July 2026, amid a growing Middle East crisis. The increase followed a series of attacks on ships near the Strait of Hormuz, a critical shipping route. Iran attacked ten vessels, following the US sinking of five Iranian oil tankers. This marks the most significant wave of attacks on shipping by both nations since the six-month-old war began.

Brent crude prices reached $102.5 per barrel, a rise of $1.38 from the previous day. US West Texas Intermediate (WTI) also saw a $1.51 increase, trading at $97.58 per barrel. The crude prices were on track for their largest daily percentage rise since September 1, with Brent even hitting a peak of $126.41 per barrel on April 30, since the escalation of the US-Iran war on February 28.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that Brent crude prices moving above $100 signifies a market increasingly concerned about the Middle East crisis affecting supply from the region. Hammad Hussain, a senior climate and commodities economist at Capital Economics, added that market participants are pricing in a longer conflict and the risk of further military strikes disrupting oil flows from the Middle East.

The Strait of Hormuz, where a significant portion of global crude oil transit, has been increasingly affected by the conflict. Flows through the Strait have dropped from about 8 million to 9 million barrels per day to below 2 million barrels per day, underscoring the sensitivity of global oil markets to developments around the Strait and other key shipping routes.