LONDON, United Kingdom: Brent crude tops $100 a barrel after Iran and the United States launched their largest declared wave of attacks on shipping since the conflict began.
Iran’s Islamic Revolutionary Guard Corps said Wednesday it attacked 10 ships near the Strait of Hormuz, including two U.S. vessels and eight oil tankers. The U.S. military said it destroyed five Iranian oil tankers.
The attacks pushed benchmark Brent futures above USD 100 a barrel for the first time since July, Reuters reported. At least one seafarer was killed, and another was reported missing.
U.S. Central Command said its strikes followed Iranian ballistic missile attacks targeting a U.S. Navy warship. Washington said no American personnel were harmed.
Read: US Strikes Iranian 5 Tankers After Missile Attacks, CENTCOM says
The IRGC, meanwhile, said it fired ballistic missiles at a base used by U.S. forces near Al Azraq, Jordan. Jordan said its air defences intercepted 18 of 20 missiles.
Oil flows through the Strait of Hormuz have fallen sharply. Claudio Galimberti, chief economist at Rystad Energy, said volumes dropped to about 2 million barrels per day after reaching 8 million to 9 million bpd before fighting resumed on August 30.
Read: Oil prices rise as Brent hits $97.34 on Iran tensions
The supply disruption has also pushed refined-fuel costs higher. Average U.S. diesel prices reached a record above USD 5.94 a gallon on Wednesday.
Iran has also said it plans to expand an off-limits maritime zone as far as Chabahar, near Pakistan, as tensions around regional shipping intensify.
