Oil Prices Top $100 as U.S.-Iran Conflict Widens
Oil prices rose above $100 a barrel Wednesday for the first time since July, as exchanges between the United States and Iran intensified concerns about energy supplies and shipping.
Jordan’s armed forces reported that 20 ballistic missiles were launched toward the country Wednesday. Air defenses intercepted 18 missiles, while two landed in unpopulated areas. Iran’s Islamic Revolutionary Guard Corps also claimed attacks on two U.S. vessels, eight oil tankers and 10 other ships near the Strait of Hormuz. U.S. Central Command denied any American warship was hit, saying all attempted strikes failed.
CENTCOM said Tuesday’s U.S. operation against five Iranian crude tankers followed an earlier Iranian missile attack on a Navy warship. It said the vessel avoided the attack and no U.S. personnel were injured. The latest actions represent a significant escalation after a brief pause in fighting.
Brent crude reached $101.58 a barrel, while average U.S. diesel prices rose to a record $5.94. U.S. strategic petroleum reserves are also at their lowest level since 1982. Goldman Sachs analyst Daan Struyven said prices could exceed $120 if hostilities continue.
Regional risks expanded as Yemen’s Iran-backed Houthis attacked four Saudi cities, targeting oil infrastructure and injuring 73 people, according to Saudi authorities. The renewed fighting could disrupt shipping through the Bab al-Mandeb strait, another route for oil and commerce.
Diplomatic efforts remain stalled. President Donald Trump has emphasized military and economic pressure, while Iranian officials have threatened further attacks on U.S. energy interests. A June 17 memorandum between Washington and Tehran collapsed amid conflicting interpretations. Analysts say both sides are testing each other’s limits, while the financial burden continues to grow. Defense Secretary Pete Hegseth estimated in July that the war had cost the United States at least $37.5 billion, alongside rising consumer costs.