Oil prices edge towards $100 amid U.S.-Iran tensions

Oil prices moved towards the $100 mark on Wednesday as renewed military confrontation between the United States and Iran raised fears of further disruption to crude supplies from the Middle East. According to Mettis Global, Brent crude futures rose 0.34 per cent to $99.08 a barrel, while West Texas Intermediate futures fell $0.07, or 0.07 per cent, to $94.00 per barrel.

Five Iranian crude tankers were destroyed by US forces on Tuesday, after an American warship came under attempted attack. US Central Command added that the warship escaped the assault, with no American crew hurt. CNBC reported that Goldman Sachs' co-head of global commodities research, Daan Struyven, warned crude could climb to $120 a barrel if Gulf export disruptions persist.

Goldman's base case still points to a gradual recovery in regional exports as producers use other shipping routes and extra pipeline capacity. Struyven noted, however, that the bullish scenario has grown more likely after attacks on shipping widened, with Persian Gulf exports potentially held back for months. The renewed clashes end a pause of about a month in military action, during which Washington focused on economic pressure against Tehran before strikes resumed late last month.