Brent crude holds above $100 as US-Iran tensions threaten supplies

Brent crude futures for November delivery held at $100.71 a barrel at 9:54 a.m. local time (0654 GMT) on Thursday, retreating 0.5 percent from the previous close of $101.21 but maintaining levels above the psychological $100 threshold for a second consecutive session. US benchmark West Texas Intermediate (WTI) crude futures for October delivery slipped 0.3 percent to $95.73 a barrel from $96.05, according to trading data.

Market Reaction

The international benchmark had breached $100 on Wednesday for the first time in nearly two months as hostilities intensified around the Strait of Hormuz, a vital chokepoint that handled approximately 20 million barrels of crude oil and petroleum products daily before the conflict. Vessel traffic through the strait has declined significantly since Tehran announced its closure on August 12, citing US attacks, with numerous commercial vessels seen anchored off Bandar Abbas, according to Anadolu footage.

Military Exchanges

US fighter jets sustained damage during an Iranian missile attack on the Muwaffaq Salti Air Base in Jordan overnight from September 8 to September 9, sources told CBS News. Around eight F-15 fighter jets were damaged and an A-10 Thunderbolt attack aircraft suffered a broken wing in the strike, which the Islamic Revolutionary Guard Corps (IRGC) said targeted the facility with ballistic missiles. No US military personnel were reportedly killed in the incident.

US Secretary of State Marco Rubio warned that Iran would face an economic cost if it continued attacking US warships, stating that four Iranian tankers had been damaged and another sunk overnight. IRGC spokesman Brig. Gen. Hossein Mohebbi told Iranian media that Tehran had expanded its control over maritime traffic beyond the Strait of Hormuz.

Washington's Position

US President Donald Trump said Washington was not actively negotiating with Tehran and claimed the war would end immediately after the November 3 congressional midterm elections. He accused Iran of seeking to influence the elections without providing details, adding that the US Navy maintained full control of the Strait of Hormuz despite Tehran's closure announcement.

The US Energy Information Administration (EIA) is scheduled to release commercial crude oil inventory data on Thursday, which traders will scrutinize for further signals on supply tightness. Analysts warned that disruptions to oil flows from the Persian Gulf could persist as long as military exchanges continue.