Oil prices continue their sharp rise, with expectations of reaching $100 a barrel

Oil prices continued their sharp rise following Israel’s attack on Iran. These gains pushed both Brent and US crude to four-month highs, with expectations of reaching $100 a barrel.

Oil traders are focused on the possibility of a wider conflict leading to the closure of the Strait of Hormuz, a vital chokepoint through which 20% of the world’s total oil consumption passes daily.

Brent crude futures rose $4.02, or 5.8%, while US West Texas Intermediate crude rose $4.35, or 6.39%, to reach $72.39 a barrel.

The UK Maritime Trade Operations warned that rising tensions in the Middle East could escalate military activity, which could impact shipping traffic in key waterways. JPMorgan indicated that oil prices could rise to between $120 and $130 per barrel if the Strait of Hormuz is closed, a scenario the bank considers dangerous but with low probability.