Brent Crude Breaks Above $100 as Middle East Conflict Escalates

Brent crude broke above $100 a barrel for the first time since July 24 after Iran-backed Houthis struck Saudi energy facilities and a drone hit an Iraqi fuel tanker. WTI climbed to its highest level since early June, and refined fuel markets, already priced above crude for months, pushed further into record territory.

Brent crude futures broke above $100 a barrel on Wednesday for the first time since July 24, marking a six-week high as an escalating Middle East conflict deepened fears over oil supply.

The benchmark rose 2.94% to $100.80 a barrel by 1210 GMT, after earlier touching $100.95, while U.S. West Texas Intermediate crude climbed 2.76% to $95.60 a barrel, its highest level since early June.

Attacks widen the six-month war

This week, Iran-backed Houthis attacked Saudi energy facilities, setting oil installations ablaze and threatening to widen the conflict. The strikes also endanger crude shipments through the Red Sea, an alternative route to the Strait of Hormuz, where oil flows have been severely curtailed.

In a sharp escalation, U.S. forces hit multiple Iranian oil tankers, while Iran targeted a U.S. base in Jordan and attacked ships. A tanker carrying about 2 million barrels of Iraqi fuel oil was struck by a drone in Iraqi territorial waters on Wednesday, and Britain's UKMTO agency reported several merchant vessels in the Gulf hit by disabling fire overnight.

Hormuz flows collapse

Before fighting resumed on August 30, roughly 8 million to 9 million barrels a day flowed through the Strait of Hormuz, double the prior week's volume, according to Rystad Energy's chief economist Claudio Galimberti. Since then, flows have fallen below 2 million barrels a day.

Refined fuel prices already above $100

The dated Brent benchmark, which prices roughly two-thirds of global supply, has traded above $100 a barrel since September 3, according to LSEG data. Consumers have paid more than $100 for gasoline and diesel for most of this year as a global refining crunch pushed fuel prices above crude oil itself.

European diesel futures were trading around $199 a barrel on Wednesday, and diesel refining margins hit an all-time high of $78.90 a barrel on September 1, up from average margins of $21 in 2025 and $19.52 in 2024. According to Wood Mackenzie: "if we had normal refining margins, crude would be the equivalent of about $150", said senior vice-president Alan Gelder.

Since the Iran war began on February 28, Brent has surged as high as $126.41 a barrel, a peak it reached on April 30.

Source: Reuters

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