Oil prices have crossed 100 US dollars per barrel for the first time in more than three and a half years as the Iran war hinders production and shipping in the Middle East. The price for a barrel of Brent crude, the international standard, was trading at 101.19 dollars yesterday, up 9.2% from its closing price of 92.69 dollars on Friday. Amid surging global oil prices, United States President Donald Trump said the short-term spike is worth the cost if it eliminates Tehran’s nuclear threat. In a post on Truth Social, Trump argued that oil prices would drop rapidly once Iran’s nuclear capabilities are destroyed, calling it a small price to pay for American and world safety and peace. The fear of Iranian missile and drone attacks has nearly halted tanker traffic through the Strait of Hormuz. The strait is a key passage for oil and gas exports from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
Oil prices have surged as the war ensnared countries and places that are critical to the production and movement of oil and gas from the Persian Gulf. The last time US crude futures traded above 100 dollars per barrel was on June 30, 2022, when the price reached 105.76 dollars. For Brent, it was July 29, 2022, when the price hit 104 dollars per barrel.
