Oil hits US$100 a barrel again as Middle East conflict hits Red Sea strait

The price of Brent crude, the global benchmark price for oil, breached US$100 a barrel on Thursday as the U.S. war on Iran dragged on for nearly five months.

As of 11 a.m. eastern on Thursday, Brent crude prices were around US$100.60 per barrel, as conflict in the Red Sea between Saudi Arabia and the Houthi rebels in Yemen drove oil tanker traffic in the crucial Bab el-Mandeb strait down.

This came as the Strait of Hormuz remained closed to vessels and the U.S. and Iran intensified their strikes.

Gas prices in Canada hit a monthly high on Thursday, with gas costing an average of $1.77 per litre across the country.

This was up from $1.70 a week ago, $1.60 from the same time a month ago and $1.33 from the same time a year ago.

Yemen’s Iran-backed Houthi rebels said they attacked two Saudi oil tankers in the Red Sea on Thursday.

Iran and the U.S. have meanwhile stepped up their attacks as they vie for control of the strait, through which a fifth of the world’s oil and gas transited in peacetime, setting off a scramble for alternative routes.

As the U.S. carried out a 12th night of strikes across Iran, U.S. President Donald Trump threatened “major military punishment” against the Houthis if their attacks on ships continue.

–With files from Associated Press