Frankfurt, July 26 (dpa/GNA) – Brent crude oil hit $100 per barrel on Thursday, the highest level in two months, as escalating violence between Iran and the United States continued to fuel concerns over supply disruptions.
A ceasefire between Iran and the US agreed in mid-June, has all but collapsed, with fighting erupting again over the strategically important Strait of Hormuz, a key route for global energy shipments that remains effectively closed.
The US military launched fresh strikes on military targets in Iran for the 12th consecutive night, while Iran continued to fire at US allies and military assets across the region on Thursday.
Tehran’s blockade of the Strait of Hormuz has caused tremendous volatility in fuel prices since the conflict began with a US-Israeli attack on Iran on February 28.
Oil prices surged to a high of $126 a barrel in April before dropping amid negotiations to end the fighting. Following the memorandum of understanding between Washington and Tehran in June, the price of a barrel fell to around $70 in July. However, the resumption of hostilities has seen prices rise again this month, reaching $100.36 on Thursday, up 6.6% on the previous day.
The surge came after the Iran-backed Houthi militia, announced it had attacked two Saudi Arabian tankers in the Red Sea, threatening to further restrict shipping in the region.
A return to the ceasefire seems far away, with US media reporting in recent days on indications of a fresh escalation, including more fighter aircraft being deployed to the Middle East.
GNA