Brent crude oil nears $100 as US-Iran war chokes Hormuz, rattles oil markets

Oil prices climbed to a six-week high as renewed fighting between the US and Iran intensified concerns about disruptions to crude supplies through the Strait of Hormuz, with Brent crude moving toward $97 a barrel.

Brent crude, the global benchmark, was trading around $97 a barrel in the latest market snapshot, while US West Texas Intermediate crude was at about $92.53. Murban crude, the UAE benchmark, was around $106.80.

Brent reached an intraday high of $98.06 a barrel on Monday, its highest level since July 24, before settling at $97.31. WTI also reached a six-week high, as per .The latest rally reflects growing concern that the escalating U.S.-Iran conflict could further disrupt oil flows through the Strait of Hormuz, one of the world's most important energy chokepoints.

Tanker attacks deepen supply fearsThe latest jump followed a series of attacks involving commercial and military vessels.

US forces on Saturday struck three Iranian oil tankers after Iran launched ballistic missiles toward two U.S. Navy warships, according to U.S. Central Command.

Iran, meanwhile, has threatened further action against shipping and said it plans to establish a new restricted maritime zone around the Strait of Hormuz.

The escalation has sharply reduced shipping through the waterway. Data from maritime analytics firm Kpler showed that an average of only about 10 commodity ships a day crossed the Strait of Hormuz over the previous 10 days, the lowest level since May.

The strait normally handles roughly one-fifth of global oil supplies, making any sustained disruption a major threat to energy markets..Brent has surged nearly 20% in a monthThe latest rally has added to a sharp recovery in crude prices.

Brent has risen about 19% over the past month and roughly 9% over the past five days, according to market data cited by Al Jazeera.

The rise comes after oil prices had retreated from much higher levels earlier in the conflict as markets anticipated a period of relative stability.

Now traders are again pricing in a larger geopolitical risk premium.

The concern is not simply that Iranian oil exports could fall. A prolonged confrontation could disrupt shipments from other Gulf producers if tanker traffic through Hormuz becomes too dangerous or expensive..Saudi refinery attack adds to pressureThe oil market also faces additional risks elsewhere in the region.

A Saudi Aramco facility in Jizan was reportedly hit for the second time in a month, raising concerns about regional refining capacity and adding another source of uncertainty for fuel markets.

The combination of attacks on tankers, threats to shipping and damage to energy infrastructure has made traders increasingly concerned that the conflict could develop into a broader regional energy crisis..Why $100 mattersBrent approaching $100 is significant because higher crude prices quickly feed into gasoline, diesel, aviation fuel and transportation costs.

US gasoline prices were already around $4.15 a gallon Monday, according to AAA data cited by Al Jazeera, up from $4.08 a week earlier.

For major oil-importing economies in Asia, Europe and elsewhere, sustained prices near or above $100 could raise inflation, widen trade deficits and increase pressure on central banks.

Goldman Sachs has warned that Brent could rise toward $120 a barrel if attacks on Middle Eastern shipping intensify..The market is watching HormuzThe immediate question for oil traders is whether the disruption around Hormuz remains temporary or becomes prolonged.

If shipping resumes normally, some of the geopolitical premium could quickly disappear.

But if Iran expands restrictions around the waterway, or if the United States and Iran continue attacking vessels, insurers and shipping companies could become increasingly reluctant to operate there.

That could leave millions of barrels of crude and petroleum products delayed or stranded.

For now, the message from the oil market is clear: the closer the U.S.-Iran conflict moves toward a sustained fight over the Strait of Hormuz, the closer Brent moves toward $100 — and potentially beyond..Oil prices hold near $97 as US-Iran conflict and Hormuz disruptions keep geopolitical premium high.

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