Brent crude, the global oil benchmark, has risen above $100 a barrel for the first time since July after the US struck five Iranian tankers, fuelling concerns over Middle East energy supplies.
Key facts
- Brent crude topped $100 a barrel for the first time since July.
- Later reporting showed the benchmark climbing above $101.
- The US hit five Iranian tankers on Tuesday, according to the BBC.
- CNBC reported escalating US-Iran tensions in the Persian Gulf drove the gains.
Brent crude, the global benchmark for oil prices, has risen above $100 a barrel for the first time since July, according to the BBC. The increase came after the US struck five Iranian tankers on Tuesday, the outlet reported.
Oil prices extended their gains on Wednesday as escalating tensions between the US and Iran fuelled concerns over further disruptions to Middle East energy supplies, according to CNBC.
Reporting through the day showed prices climbing higher still. CNBC said Brent crude topped $101 for the first time since July as fighting escalated in the Persian Gulf.
The BBC’s coverage evolved as the situation developed, with a later version of its report referencing US and Houthi strikes alongside the US action against the Iranian tankers.
The rise in the price of Brent crude reflects market anxiety about the stability of energy supplies flowing from the Middle East, a region central to global oil production and shipping.
Both outlets tied the price movements directly to the confrontation between the US and Iran, with concerns focused on the potential for further disruption to supplies from the area.
Why it matters
Oil prices ripple through the wider economy, affecting the cost of fuel, transport and goods for households and businesses. A sustained move above $100 a barrel, driven by conflict in a key producing region, signals renewed volatility that could feed into inflation and consumer costs.
Frequently asked questions
Why did oil prices rise above $100 a barrel?
According to the BBC and CNBC, prices rose after the US struck five Iranian tankers on Tuesday, with escalating US-Iran tensions in the Persian Gulf raising concerns over disruption to Middle East energy supplies.
When was the last time Brent crude was this high?
Both the BBC and CNBC reported that this was the first time Brent crude topped $100 a barrel since July.
How high did prices climb?
Brent crude passed $100 a barrel, and later CNBC reporting showed the benchmark topping $101.