Oil Price Hits $100 as US-Iran War Threatens Crude Shipments

Brent crude, the global oil benchmark, rose 2.13 percent to $100 a barrel on Wednesday, hitting a six-week high.

US West Texas Intermediate (WTI) also gained 1.76 percent to $94.67 a barrel.

According to Reuters, oil prices surged as the US-Iran war threatened crude shipments through the Red Sea, a key alternative route to the Strait of Hormuz, where oil flows have been severely curtailed since the war began on February 28.

US central command said ‌its forces destroyed five ⁠Iranian crude oil carriers on September 8 after attempted missile attacks ‌on ⁠a US navy warship over the ⁠past two days.

Since the start of the conflict, Brent crude has climbed as high as $125 a barrel, reaching that peak on April 30.

On Tuesday, Saudi Arabia said attacks by Yemen’s Iran-aligned Houthis on several energy facilities in the southern region of the kingdom caused fires and forced a temporary halt to some operations.

Amid the ongoing conflict, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies agreed on September 6 to pause planned oil production increases and maintain output levels in October.

The countries are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.

OPEC said the meeting reviewed global oil market conditions and the outlook for the market.

In Nigeria, the increasing crude oil prices are expected to put further pressure on petrol prices, which have already risen above N1,300 per litre.