Brent crude pushed further above $100 a barrel on Thursday, with the benchmark rising to $102.62, as fresh attacks around the Strait of Hormuz raised concerns that disruptions to Middle East oil supplies could last longer than initially expected.
Brent was up 1.39% from Wednesday, extending a rally that has taken the benchmark 15.42% higher over the past month and 54.62% above its level a year ago.
Fewer ships are getting through
The latest pressure on prices is coming from the continued slowdown in shipping through the Strait of Hormuz.
Reuters reported that only seven commodity vessels passed through the strait on Wednesday, down from 12 the previous day and below the 10-day average of 14. The figure included four vessels leaving the strait and three entering.
That matters because Hormuz is one of the world’s most important oil routes. Before the conflict, roughly one-fifth of global oil and gas supplies passed through the waterway. With traffic now well below normal, traders are increasingly concerned about how much crude can actually reach international markets.
Iran signals more fighting
The situation is also becoming harder for the market to price as a short-term disruption.
Iran has said it is ready for a more intense confrontation with the United States and has vowed to resist the naval blockade. Tehran also said it attacked 10 ships near Hormuz after the US destroyed five Iranian oil tankers.
The latest exchange of attacks has raised fears that shipping through the Gulf could remain disrupted for some time. Reuters reported that oil prices have risen nearly 30% since early August as markets increasingly price in the possibility of a prolonged conflict.
Saudi attacks add to the pressure
The risks are not limited to ships passing through Hormuz.
Iran-backed Houthi militants have also stepped up attacks on Saudi Arabia, including energy facilities. That has added another layer of uncertainty around the region’s oil infrastructure and shipping routes.
For the oil market, the concern is becoming less about one isolated attack and more about whether disruptions across several routes can continue at the same time.
For now, Brent’s move above $100 is holding. The next question is how long the supply disruption lasts.
