Brent crude surpasses $105 barrier as supply disruption fears mount

Oil prices rose on Thursday as Brent crude surpassed the $100-per-barrel mark, amid trader concerns over further supply disruptions amid the latest round of attacks between Iran and the United States on shipping traffic, marking the largest such assaults since the conflict began six months ago.

Brent crude futures rose $4.46, or 4.46%, to $105.70 per barrel, while U.S. West Texas Intermediate crude climbed $2.91, or 4.34%, to $100.40 per barrel.

In a client note, Daniel Hines, an analyst at ANZ, wrote: “The reciprocal attacks in the Arabian Gulf suggest that oil flows from the region are likely to remain disrupted in the near future.”

Oil flows through the Strait of Hormuz remain well below pre-war levels.

Last Wednesday, the U.S. Energy Information Administration (EIA) raised its oil price forecasts for this year and next, citing falling global inventories due to supply shortages from the Middle East.

Hines added: “The widening scope of the conflict threatens deeper disruptions to oil supplies, which has already pushed the oil market to strive to adapt to the situation.”