Brent crude prices climbed above $100 a barrel on Wednesday after Iran’s Revolutionary Guard reportedly fired on three container ships. The incident occurred in the Strait of Hormuz, a waterway that handles approximately 20% of global oil and natural gas supplies.
Brent crude futures rose 1.6% to reach $100.07 per barrel. West Texas Intermediate futures increased by 1.7%.
The attacks took place hours after the U.S. President announced an indefinite extension of a fragile ceasefire. While the extension was intended to facilitate negotiations, a naval blockade of Iranian ports remains in effect.
These events introduce fresh instability into global energy markets and maintain a significant risk premium on oil prices. The escalation underscores the high risk to shipping and the potential for continued disruption to international energy flows.