Brent crude surpassed $100 a barrel for the first time since July as military tensions between the U.S. and Iran intensified, leading to attacks on energy infrastructure.

Global oil prices rose above $100 per barrel on Wednesday, marking the first time the benchmark has hit that threshold since July. The increase follows a series of military exchanges between the U.S. and Iran, including U.S. strikes on five Iranian tankers and retaliatory Iranian attacks on a U.S. base in Jordan and vessels in the Strait of Hormuz.

Military Escalation and Energy Infrastructure

The U.S. military reported destroying five Iranian tankers, which officials described as part of a shadow network funding the Islamic Revolutionary Guard Corps. One vessel, the M/T Riesco, was confirmed sunk in the Gulf of Oman. In response, Iran launched missiles at a U.S. base in Jordan and claimed to have attacked eight oil tankers in the Strait of Hormuz. Additionally, Iran-backed Houthi rebels in Yemen conducted drone and missile strikes against Saudi Arabian energy facilities and civilian sites in cities including Abha, Jazan, and Najran, resulting in 73 injuries and fires at oil sites.

Market Impact and Economic Concerns

The conflict has significantly disrupted global energy trade, particularly through the Strait of Hormuz, which historically accounts for 20% of the world's oil and liquefied natural gas supply. Brent crude prices have risen more than 65% since the beginning of the year, though they remain below the $120 peak reached early in the war. Rising oil costs have translated to higher prices at the pump, with U.S. gas prices reaching $4.22 on Wednesday, the highest level since early June.