Topline
Global oil prices crossed $100 per barrel early on Wednesday, hitting the highest level seen since July, amid renewed escalation in fighting in the Middle East as the U.S. forces struck five Iranian tankers in the Persian Gulf while Iran retaliated by targeting U.S. bases in Jordan.
The spike in oil prices comes amid renewed escalation in the Strait of Hormuz.
AP
Key Facts
The global benchmark Brent Crude futures index crossed $100 per barrel for the first time since July, before settling slightly lower at $99.71.
Crude prices are now 40% above pre-war levels of around $70 per barrel, but they remain below the peak of around $120 per barrel reached earlier in the conflict.
The spike comes as the U.S. military’s Central Command announced it had destroyed five Iranian crude oil carriers in response to the Islamic Revolutionary Guard Corps’ missile launches targeting a U.S. Navy warship.
CENTCOM said four of the tankers it struck were in the Gulf of Oman, while one was located near Kharg Island—Iran’s key oil export port.
The IRGC responded to the U.S. strikes on its tankers by launching ballistic missiles at U.S. bases in Jordan.
What About Gas Prices In The U.S.?
According to AAA’s tracker, the national average price of gas in the U.S. stood at $4.22 per gallon on Wednesday, up from around $4 one month ago. The national average fell below $4 in June after the U.S. and Iran signed an interim peace deal, but it rose back above $4 later in July amid renewed tensions. The latest spike is still below the $4.50 mark, which was breached earlier in the conflict in May; gas remains well above the pre-war average of around $2.90 per gallon.
This is a developing story.
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