Oil Tops $100 Per Barrel Amid Escalating Middle East Conflict

Global oil prices surpassed $100 per barrel on Thursday, with West Texas Intermediate futures reaching $100.88 and Brent crude trading at $105.40, levels not seen in over three months.

This surge follows intensified fighting between the U.S. and Iran, and attacks by Iran-backed Houthi rebels on energy infrastructure and key shipping lanes. The Houthi seizure of the Yemeni Red Sea port of Mokha, near the Bab Al Mandeb strait, has raised concerns about control of a vital waterway for global oil supplies. The U.S. military reported destroying at least eight Iranian tankers since Saturday in retaliation for attempted attacks on American warships.

The conflict, which began on February 28, has seen the number of vessels transiting the Strait of Hormuz drop. U.S. crude oil prices have advanced nearly 16% in September. White House advisors have discussed with President Donald Trump the possibility that the Iran war could extend past Inauguration Day in January 2029, a report that contradicts Trump's earlier assertion that the war would end immediately after the midterm elections.

Pump prices hit a Labor Day record, and diesel is expected to cross $6 per gallon. Jet fuel costs have led carriers to cut flights and raise fares.