Brent crude tops $100 as tanker attacks threaten global oil flows

Oil prices have remained above $100 a barrel as traders assess the risk of further disruption to global supplies following escalating attacks on shipping between Iran and the US.

Brent crude futures edged 0.1% lower to $101.10 a barrel by 02:56 GMT on September 10, while US West Texas Intermediate crude rose 0.2% to $96.24, Caliber.Az reports via foreign media.

Brent has risen by nearly 30% from lows reached in early August, after a permanent agreement between the US and Iran to cease attacks failed to materialise and fighting resumed later in the month.

Iran said on September 9 that it had attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers. Iran's Islamic Revolutionary Guard Corps also said it would escalate its response to any further attacks.

"The tit-for-tat attacks suggest oil flows from the Persian Gulf are likely to remain disrupted for the foreseeable future," ANZ analyst Daniel Hynes said in a client note.

Oil flows through the Strait of Hormuz remain far below pre-war levels. Before the conflict, the waterway carried roughly a fifth of global oil and gas supplies.

Pressure is also mounting on alternative routes for Gulf oil exports, with Iran-aligned Houthi militants stepping up attacks against Saudi Arabia and threatening crude shipments through the Red Sea.

"Uncertainty around actual volumes coming from the Strait of Hormuz and continued shipping disruptions are keeping physical markets tight and supporting a geopolitical risk premium in oil prices," OCBC analyst Christopher Wong said in a note.

The dated Brent benchmark, against which roughly two-thirds of oil supply is priced, has remained above $100 a barrel since September 3, according to LSEG data.

The US Energy Information Administration raised its oil price forecasts for this year and next on September 9, citing falling global stockpiles following the loss of Middle Eastern supply.

By Aghakazim Guliyev