Oil prices surged on Wednesday as fighting between the U.S. and Iran intensified in the Persian Gulf, raising concerns that the supply of oil passing through the Strait of Hormuz could be reduced.
Brent crude futures, the global benchmark for oil prices, rose 3.5 percent to above $101. This is the first time Brent has topped $101 since May. In July, Brent briefly rose above $100. One year ago, Brent was priced at around $66 a barrel.
The price of West Texas Intermediate futures traded nearly 3.7 percent higher to around $96.40. That is also the highest since May.
The recent escalation in fighting has renewed fears of global oil supplies falling. What’s more, many investors see the renewed hostilities as evidence that the war between the U.S. and Iran will not be resolved quickly.