Oil prices climbed more than US$1 in early Wednesday trade as Iran launched fresh attacks on US military assets in the Gulf, extending gains that have pushed Brent crude close to US$100 a barrel.
Brent crude futures rose US$1.57, or 1.6%, to US$99.49 a barrel by 0001 GMT, while US West Texas Intermediate crude gained US$1.60, or 1.72%, to US$94.63.
The latest gains marked the fourth consecutive session of increases, with Brent now around 25% higher since early August as hopes for a permanent resolution to the six-month-old conflict have faded and fighting has intensified.
Iran’s Revolutionary Guards said they had attacked two US destroyers and what it described as a US base in Jordan’s Al Azraq with ballistic missiles, in retaliation for US attacks on Iranian oil tankers.
Jordan’s air-defence systems intercepted 18 of the 20 ballistic missiles launched from Iran, with the remaining two falling in unpopulated areas. No casualties were reported, according to the country’s state news agency.
The escalation has added to concerns over disruptions to oil supplies from the Middle East, with markets already facing heightened uncertainty over the conflict.
US Secretary of State Marco Rubio warned that Washington would continue targeting Iranian oil tankers in response to attempted attacks on US warships.
“Iran continues to try to hit U.S. naval ships, and for every time they do that or try to do that, they’re going to lose tankers,” Rubio told reporters during a visit to Colombia.
US Central Command said its forces destroyed five Iranian crude oil carriers on Sept 8 following attempted missile attacks on a US Navy warship over the previous two days.
The latest oil surge also comes after Brent gained 2.13% to US$99.07 a barrel and US crude rose 2.82% to US$94.05 on Tuesday, adding to inflation concerns that have already weighed on global equities.
Reuters
