Oil holds above $100 as Iran-US attacks threaten deeper supply disruption

Oil hits $100.

Oil prices extended gains on Thursday, with Brent holding above $100 a barrel as escalating Iran-US attacks on shipping heightened concerns over further disruptions to Middle East crude supplies.Brent crude futures rose 0.1% to $101.34 a barrel by 0107 GMT, while US West Texas Intermediate crude gained 0.5% to $96.55.Brent settled $3.29, or 3.4%, higher at $101.21 a barrel on Wednesday after touching $101.58. WTI rose $3.02, or 3.25%, to $96.05. Both benchmarks closed at their highest levels since May 22.The gains came after Iran said it had attacked 10 ships near the Strait of Hormuz, while the United States sank five Iranian oil tankers. Iran's Revolutionary Guard Corps also warned that it would step up its response to further attacks.Strait of Hormuz in focusThe Strait of Hormuz remains a key flashpoint for global energy markets. Nearly one-fifth of the world's oil supply passed through the strategic waterway before the war, but oil and gas flows through the strait have remained well below pre-war levels.Oil prices had mostly stayed below $100 a barrel since late May as traders expected the conflict to remain contained.

Brent has surged as high as $126.41 a barrel since the war began on February 28, reaching that peak on April 30. Fuel prices add to pressureThe physical crude market is already reflecting the impact of supply disruptions. Refined fuel prices have also remained elevated.