NEW DELHI, Sept 10 - Oil prices remained firm on Thursday after Brent crude climbed past the $100-per-barrel mark, as traders absorbed reports of escalating attacks on shipping that could further interrupt flows from the Persian Gulf.
By 0107 GMT, Brent crude futures had inched up 0.1% to $101.34 a barrel, while U.S. West Texas Intermediate was trading at $96.55 a barrel, a 0.5% gain. The movements reflected market concerns about the capacity of global oil supplies to adjust if maritime disruptions persist.
Iran reported that it struck 10 ships near the Strait of Hormuz, after the United States sank five Iranian oil tankers. Iran's Revolutionary Guard Corps warned it would increase its response to any additional attacks. These actions represent some of the largest exchanges against commercial shipping since the six-month-old conflict began.
Market analysts noted the likely consequences for oil movement through the Strait of Hormuz, the waterway that prior to the conflict carried roughly a fifth of global oil and gas supplies. Current oil flows through the strait remain well below their pre-war level, sustaining upward pressure on prices.
Daniel Hynes, an analyst at ANZ, said in a client note that "the tit-for-tat attacks suggest oil flows from the Persian Gulf are likely to remain disrupted for the foreseeable future." He added that the widening of the conflict "threatens to risk even deeper disruption to oil supplies that had already left the oil market scrambling to adjust."
On Wednesday, the U.S. Energy Information Administration revised its oil price forecasts higher for this year and the next, citing falling global stockpiles tied to the loss of Middle Eastern supply. The EIA's upward adjustment underscores official recognition that inventories are tightening as a result of reduced flows.
For market participants, these developments mean ongoing sensitivity to supply-side shocks emanating from maritime routes in and around the Persian Gulf. Traders and analysts are monitoring both operational disruptions to tanker traffic and the potential for further military escalation that could extend or deepen the current shortfall in seaborne oil movements.
Summary
Brent remained above $100 after reports of reciprocal attacks on tankers near the Strait of Hormuz drove concern over persistent supply disruptions. WTI also rose. The U.S. EIA raised price forecasts as inventories fell due to lost Middle Eastern supply.
Key points
- Brent crude futures were $101.34 a barrel at 0107 GMT, up 0.1%.
- U.S. WTI was $96.55 a barrel, up 0.5%.
- Attacks reported near the Strait of Hormuz and warnings of escalation have left oil flows below pre-war levels, and the EIA raised price forecasts as global stockpiles drop.
Risks and uncertainties
- Further maritime attacks or military escalation could prolong disruption to seaborne oil flows - impacting energy and transportation sectors.
- Persistently lower flows through the Strait of Hormuz may continue to tighten global inventories, influencing oil and commodity markets.