US Iran War: Oil price is creeping closer to the psychological $100 per barrel figure amid fresh US-Iran conflict threatening the security of oil supply from the Middle East. The price of Brent closed last week near the level of $96.28 per barrel. The current conflict arose following the exchange of fire between US and Iranian forces close to Iranian territorial waters. U.S. forces fired three Iranian oil tankers in response to the ballistic missile attack by Iran on US Navy ships in the area. Iran also warned ships not to move freely in the Strait of Hormuz.
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Why Is the Oil Price Is Returning to $100?
The Strait of Hormuz is crucial in the current oil situation because the strait represents one of the most important transit points for the world’s energy supplies. Brent is already seeing gains amid the current conflict situation. According to reports by Reuters, the price gained more than 7.6% within the past week.
Supply Disruption Fears Grow
The latest attacks have increased concerns that the conflict could affect oil transportation beyond Iran’s own exports. Tanker movements through the region have already faced disruption, while attacks on oil carriers have added another layer of risk for traders and shipping companies. Markets are therefore watching the Strait of Hormuz and developments around Iranian oil infrastructure closely. A prolonged disruption could further reduce available supplies and push Brent towards or above the $100 threshold.
What It Means for Global Markets?
US Iran War: A sustained rise in crude prices could increase fuel, transport, and production costs worldwide. Higher energy prices could also add to inflation pressures and complicate decisions for central banks. The impact is already visible in fuel markets. US diesel prices recently reached record levels, while European refining margins have also surged amid tighter fuel supplies. For now, Brent remains below $100, but the latest military escalation has brought the psychological level much closer. If supply disruptions deepen or tensions around the Strait of Hormuz worsen, the countdown to $100 crude could become a reality.
