Oil prices surpass 100 dollars a barrel after US strikes on Iranian tankers

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Oil prices have risen above 100 dollars a barrel for the first time since July after the latest round of strikes in the Iran war.

US officials said on Tuesday night that multiple Iranian oil tankers had been struck in response to more attempted missile attacks on a Navy warship.

Traders in the financial markets reacted to tensions flaring up again and the price of Brent crude oil was rising by about 2% on Wednesday.

Brent crude briefly surpassed 100 dollars a barrel in the morning, reaching highs not seen since late July, before dipping to around 99.50 dollars a barrel.

The latest strikes in the Middle East show fighting between the US and Iran continues to escalate after more than six months of war, weighing on hopes among investors that a peace deal can be reached this year.

Richard Hunter, head of markets at Interactive Investor, said: “The outlook in the Middle East has recently worsened once more, with any signs of detente looking elusive.

“Fresh fighting in the region has seen Iran targeting a US base in Jordan as retaliation for US strikes on some of its oil tankers, while Iranian-backed Houthis struck several cities in Saudi Arabia.

“Such focus comes at a time when consumers could be affected by the lack of supply as the colder seasons approach.

“This adds another level to the inflationary concerns which have blighted investor thinking over recent weeks.”