Oil prices have surged above $100 a barrel after fresh attacks between the United States and Iran raised fears of further disruption to energy supplies across the Middle East.
Brent crude, the international benchmark, rose by almost 3 per cent to $100.72 a barrel on Wednesday, while US West Texas Intermediate gained 2.4 per cent to about $95.25. The jump came as financial markets reacted to a new escalation in the conflict.
The US military said it had destroyed five Iranian oil tankers on Tuesday after Iranian forces attempted to strike an American warship with ballistic missiles. Iran subsequently launched missiles towards US targets in Jordan, according to Iranian state media.
Jordan’s military said its air defence systems intercepted 18 ballistic missiles aimed at its territory, while two others landed in unpopulated areas. No casualties were reported.
The latest exchanges have heightened concern over shipping through the Strait of Hormuz, a vital route for global energy supplies. The waterway has effectively been closed to much commercial traffic since the conflict intensified, adding to pressure on an already weakened supply chain. ([apnews.com](https://apnews.com/article/d1284eb72934a3b076c14449bc087fbd?utm_source=openai))
US petrol prices also rose sharply, with the average price of regular fuel increasing by seven cents overnight to $4.22 a gallon, according to the American Automobile Association. Diesel reached $5.94 a gallon, its highest level on record, threatening to push up transport and production costs.
Higher energy prices have also weighed on Wall Street, where shares fell as investors assessed the potential impact on inflation and economic growth. Oil companies moved higher, but retailers and other sectors declined.
The conflict has disrupted more than oil markets. Rising jet-fuel costs have prompted some airlines to cut flights and increase fares and fees, while businesses and consumers face renewed pressure from higher fuel and transport bills. ([apnews.com](https://apnews.com/article/7538e6386a819bcdc2547d530ec3472e?utm_source=openai))
