Oil prices surged past $100 a barrel on Wednesday, marking the first time since July that Brent crude has reached this level, according to BBC reports. The spike followed an overnight escalation in the conflict between the US and Iran, with the US conducting strikes on five Iranian tankers in retaliation for an attack on one of its warships. The strikes targeted four vessels in the Gulf of Oman, linked to Iran's Revolutionary Guards Corps (IRGC), and another near Kharg Island, a key oil export hub.

The conflict, which began on 28 February, has seen oil prices fluctuate dramatically. Before the war, Brent crude was priced at around $70 (£52) a barrel. The war has effectively disrupted the Strait of Hormuz, which carries 20% of the world's oil and liquefied natural gas (LNG). The rising costs have led to significant price increases for motorists globally. Iran responded by launching missiles at a US base in Jordan, most of which were shot down, and claimed to have attacked two US vessels and eight oil tankers in the Strait of Hormuz.

Jordan reported that it had shot down 18 of the 20 Iranian missiles, with two falling in unpopulated areas. Iran's Revolutionary Guards stated that they had attacked two US vessels, eight oil tankers, and 10 'non-compliant vessels' in the Strait of Hormuz. The latest escalation followed an Iranian attack on a US warship, which the US Central Command said were 'successfully evaded' and did not harm American troops. The US accused the Iranian tankers of being part of a 'multi-billion-dollar shadow network' funding the IRGC and its regional proxies.

One of the struck vessels, the M/T Riesco, sank in the Gulf of Oman, with Centcom posting a video of the damaged ship. Kharg Island, where one tanker was attacked, hosts Iran's main oil export terminal, with 90% of the country's crude oil passing through the island. Regional instability has further pressured oil prices, with Yemen's Iran-backed Houthi movement attacking energy facilities and civilian infrastructure in Saudi Arabia, injuring 73 people. The attack caused fires at oil facilities, leading to a temporary halt in operations.

US Secretary of State Marco Rubio described the situation as 'pretty straightforward,' stating that Iran's attempts to target US naval ships would result in the loss of tankers. The US strikes came hours after Iran's navy claimed to have seized an uncrewed US submarine in the Strait of Hormuz. A US Navy spokesperson clarified that the 'underwater drone' was an older model that did not collect sensitive data or carry classified equipment.

The situation remains volatile, with the potential for further escalation. While oil prices have dipped slightly to $99.90 a barrel, any new flare-ups in the Middle East could push prices higher. The impact on global petrol prices and energy markets continues to be a major concern, with the conflict highlighting the fragility of key oil routes and the broader implications for international stability.