Brent crude jumps 3.5%, surpassing $101 per barrel amid oil supply concerns

Oil prices surged strongly on Wednesday, surpassing the $100-per-barrel mark, as fears mounted over potential disruptions to energy supplies in the Middle East and an increase in attacks targeting shipping movements and oil facilities in the region.

According to the latest data reported by Reuters as of 6:15 p.m. Kuwait time, Brent crude futures rose by $3.40, or 3.5%, to $101.32 per barrel, after touching $101.55 during trading, marking the first time the $100 threshold had been breached since late July.

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Meanwhile, U.S. West Texas Intermediate (WTI) crude futures climbed by $3.45, or 3.7%, to $96.48 per barrel, recording their highest level since early June.

The price jump came amid renewed escalation between the United States and Iran, with attacks on tankers and ships in the region, heightening concerns over continued disruptions to oil supplies through the Strait of Hormuz.

Oil flow through the strait recently fell back to levels below 2 million barrels per day, down from between 8 and 9 million barrels per day in the week prior to the resumption of hostilities on August 30.

Houthi attacks on energy facilities in Saudi Arabia have also increased market fears that supply disruptions could spread to other oil routes and facilities in the region.

Latest trading activity indicates that Brent crude is on track to record its largest percentage daily gain since September 1, as geopolitical risk premiums continue to rise in energy markets.