US crude oil prices topped $100 a barrel for the first time since May as investors grew nervous that the war in Iran could escalate and disrupt global energy supplies.
October West Texas Intermediate (WTI) crude oil futures surged $5.85, or 6.09%, to $101.90 per barrel at 19:09 GMT on Thursday on the New York Mercantile Exchange. US crude oil prices have rocketed more than 11% this week and are up 77% year-to-date.
Brent, the seaborne international benchmark for oil prices, firmed above $100. November Brent crude futures climbed $6.14, or 6.07%, to $107.35 a barrel in overseas trading.
Investors are responding to a Wall Street Journal report citing US officials who expect the Iranian conflict to drag on until January 2029.
“In the Oval Office and Situation Room, Vice President JD Vance, Secretary of State Marco Rubio and others have discussed with the president that Tehran could continue to resist U.S. pressure under the blockade and other military tactics, potentially extending the conflict past Inauguration Day in January 2029, the officials said,” the newspaper reported.
This contradicts President Donald Trump’s claim at the Republican National Convention on Wednesday night that the war would end shortly after the midterm elections in November.
After the memorandum of understanding collapsed in late June, fighting between Washington and Tehran has resumed. Both sides have engaged in tit-for-tat strikes in recent weeks.
“WTI has completely unwound its selloff between early June and July, while Brent prices are now well above those seen in early June,” said David Morrison, senior market analyst at Trade Nation, according to CNBC.
Meanwhile, new Energy Information Administration (EIA) data show domestic crude oil inventories declined by 391,000 barrels for the second straight week, slightly below economists’ expectations.
Gasoline supplies rose by 1.269 million barrels. Distillate supplies jumped by more than two million barrels, while heating oil stockpiles were unchanged.
Natural gas prices ticked up 0.5% to $2.84 per million British thermal units despite a higher-than-expected supply build of 40 billion cubic feet last week.
October gasoline futures surged $0.1796, or 5.59%, to $3.3902 per gallon. October heating oil futures advanced $0.271, or 5.64%, to $5.07 a gallon.