Casablanca – Oil prices surpassed $100 a barrel on Wednesday as the dispute over the Strait of Hormuz increased pressure on global energy markets and weighed on major European stock indexes.
Brent crude futures had risen 2.83% by 10:33 a.m. GMT, hitting $100.69 a barrel after reaching an earlier high of $100.95. US West Texas Intermediate crude gained 2.34%, to $95.21 a barrel, its highest price since early June.
Tensions continued around the Strait of Hormuz, a key route for global energy shipments. The US Maritime Administration said the risk to commercial shipping in the Persian Gulf, the Strait of Hormuz and the Gulf of Oman remained high.
The dispute has kept attention firmly on energy supplies and the possibility of further disruption to oil flows through the region.
The European Commission said Tuesday that geopolitical uncertainty in the Middle East continues to drive significant price volatility in crude oil and petroleum products, particularly jet fuel and diesel. However, the Commission’s Oil Coordination Group said Europe currently faces no oil supply problem, with commercial and emergency stocks at sufficient levels.
Energy prices weigh on markets
Natural gas prices in Europe also continued to rise. The Dutch TTF gas contract, a key European benchmark, climbed 2.75% to €77.92 per megawatt-hour after reaching its highest level since January 2023, according to ICE Endex market data.
The European Commission said earlier this month that EU gas storage levels remained lower than in previous years but that it saw no immediate risk to gas supply. The Commission also said geopolitical uncertainty continued to drive significant price volatility, while Qatari LNG production remained shut down.
Stock markets reflected the pressure from the energy moves. Paris fell 0.61% in early trading, Frankfurt lost 0.50%, London declined 0.22%, and Milan dropped 0.39%.
Asian markets showed a mixed picture. Seoul’s Kospi ended 1.40% higher, helped by a 3.51% gain for SK hynix, while Tokyo’s Nikkei closed 0.19% lower.
Investors are also waiting for fresh US inflation data. The US Bureau of Labor Statistics has scheduled the August Consumer Price Index release for Friday, September 11.
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The European Central Bank is also due to announce its latest monetary policy decision on Thursday. The ECB raised its key rates by 25 basis points in June and said higher energy prices had pushed its inflation outlook higher.
With Brent now only a few cents below $100, oil remains at the center of attention as markets track the dispute over the Strait of Hormuz and its potential impact on global energy supplies.
