Brent holds above $100 as tanker attacks deepen supply fear

Oil prices steadied on Thursday, with Brent crude above $100 a barrel as traders feared deeper supply disruptions, Business Recorder reported. Brent has climbed nearly 30 per cent from early August lows, after a lasting ceasefire between Iran and the United States never materialised. Brent futures dipped 0.1 per cent to $101.10 a barrel at 0256 GMT, while US West Texas Intermediate stood at $96.24, up 0.2 per cent.

Iran said on Wednesday that it had struck 10 ships close to the Strait of Hormuz, following the US sinking of five Iranian oil tankers. Its Islamic Revolutionary Guard Corps warned it would step up retaliation against any further strikes. Crude flows through the Strait, which handled about a fifth of worldwide oil and gas before the conflict began, remain well below pre-conflict levels. Gulf export routes face added strain as Houthi strikes on Saudi Arabia intensify, putting shipments through the Red Sea at risk.

OCBC's Christopher Wong added that doubts about real Hormuz volumes and ongoing shipping problems have kept physical supply tight and lifted a geopolitical risk premium. LSEG data shows Dated Brent, the physical benchmark underpinning about two-thirds of supply, has traded above $100 a barrel from September 3.