Brent crude hits $100 a barrel as US strikes Iranian oil tankers

Brent crude, the global oil benchmark, rose around 3% early Wednesday to touch $100 a barrel.

At the time of writing, Brent was up around 2.8% at $100.71, while WTI had climbed more than 2.5% to about $95.66.

Both oil benchmarks are now up more than 60% so far this year.

The move came after US Central Command said American forces struck five Iranian oil tankers, four in the Gulf of Oman and one near Kharg Island, a key hub for Iran’s oil exports.

The strikes followed an attempted Iranian ballistic missile attack on a US Navy warship.

Iran responded by firing missiles toward Jordan and warning it could target vessels near Kuwaiti and Bahraini ports.

Houthi attacks add to supply fears

Oil had already climbed Tuesday after Iran-backed Houthi rebels attacked Saudi energy infrastructure, forcing some facilities to halt operations.

Saudi-led forces said the strikes injured dozens of civilians and vowed to respond.

Traders are increasingly worried that fighting is spreading beyond Iran and could disrupt more of the region’s oil supply, particularly shipping through the Strait of Hormuz.

Higher crude has already pushed up fuel costs for consumers.

A familiar pattern this year

This isn’t the first time Brent has hit triple digits in 2026.

It first crossed $100 in March, its highest level since Russia’s invasion of Ukraine in 2022, then fell as low as $72 in June after the US and Iran reached a deal to reopen the Strait of Hormuz.

Prices climbed back above $100 in July before easing, and have now returned to that mark.

BOK Financial’s Dennis Kissler said in a note that traders are watching how quickly tanker traffic out of the Middle East can shift.

Demand is also a factor, analysts note, since China, the world’s largest oil importer, has recently pulled back on imports, which has helped cap prices.

A pickup in Chinese buying could send prices higher still.

Markets and the Fed

Rising oil prices have unsettled equities and revived inflation worries.

The S&P 500 fell 0.8% on Tuesday and is down just under 2% from its mid-August record high.

US stock futures fell in premarket trading, with Dow futures down 0.57%, S&P 500 futures down 0.31%, and Nasdaq futures down 0.39%.

The 10-year US Treasury yield briefly climbed above 4.8% on Tuesday, its highest level since November 2023, as rising oil prices fed concerns that inflation could stay elevated for longer.

The 2-year Treasury yield, more sensitive to near-term Fed policy, rose to its highest since January 2025.

Overseas, government bond yields climbed too: France’s 30-year bond yield hit its highest since April 2008, while Germany’s benchmark 10-year bund yield touched its highest level since early 2011.

Gold, meanwhile, edged higher after three straight losing sessions, helped by a softer dollar even as energy-driven inflation concerns persist.

The metal has held near $4,400 an ounce since rebounding from July lows around $4,000.

This week’s US inflation data is likely to be the next major catalyst for both oil and rate expectations.