Brent crude tops $100 as Iran targets US vessels in Gulf

Brent crude futures climbed above $100 a barrel on Wednesday — rising 2.2% alongside West Texas Intermediate gains — as Iran’s Islamic Revolutionary Guard Corps announced naval strikes against American vessels and commercial shipping in the Persian Gulf.

The IRGC said its forces targeted two US vessels and eight oil tankers in early morning operations, claiming the attacks inflicted heavy damage on the targets. "The strikes were carried out in response to US aggression, including an attack on five Iranian oil tankers in the Persian Gulf," the elite force said in a statement. The Guard added that naval units also engaged 10 additional vessels attempting to enter "a restricted and unsafe area of the Strait of Hormuz," alleging they acted with the "encouragement and support of the US military."

Diplomatic track stalls

The attacks come amid a faltering diplomatic initiative brokered by Pakistan and Qatar in June, when Washington and Tehran signed a memorandum of understanding outlining steps to end hostilities, reopen the Strait of Hormuz and address economic restrictions. Both sides have since accused each other of failing to implement the agreement’s commitments, while military clashes have continued alongside disputes over sanctions and navigation rights.

The IRGC did not identify the specific US vessels or tankers it said were targeted, nor did it provide details on when the attacks took place. West Texas Intermediate crude rose 1.5% to $94.5 per barrel during the same trading session.