Brent crude moved closer to $100 a barrel as fresh US strikes on Iranian oil tankers near the strategic Kharg Island export hub heightened concerns over further disruptions to Middle East supplies and shipping through the Strait of Hormuz.
Brent climbed to around $99 a barrel, its highest level in weeks, while West Texas Intermediate traded near $95. The latest move came after US Central Command said American forces destroyed five Iranian crude carriers following two ballistic-missile attacks by Iran's Islamic Revolutionary Guard Corps on a US Navy warship. One of the vessels, the Derya, was struck near Kharg Island.
The strikes mark a further escalation in the conflict. Iran subsequently fired missiles towards US targets in Jordan, while Iranian authorities warned vessels around Gulf ports that they could be targeted. Separately, Iran-backed Houthi militants attacked energy infrastructure in southern Saudi Arabia, disrupting operations at several sites.
While some crude continues to move through the waterway, traffic remains constrained and vessels face heightened security risks. Reuters reported that Gulf producers are also using alternative export routes, while higher output from the US, Canada and Guyana is providing some offset to the supply shock.
Oil has already risen sharply this year, with Brent up more than 60%, while refined products such as diesel have posted even stronger gains as the conflict affects both crude and product markets.
The market is also getting support from stronger Chinese crude buying, reversing a period when refiners relied more heavily on inventories and reduced imports.
Despite the escalating risks, Brent has so far struggled to sustain a move above $100. But a deeper disruption to Gulf exports could quickly alter that balance.
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