Oil jumps to $105, pushing up chances of a US interest rate increase

Prices spiked as attacks on oil tankers escalated amid the Iran-war" class="entity-link entity-event" data-entity-id="107864" data-entity-type="event">US-Iran-war" class="entity-link entity-event" data-entity-id="38748" data-entity-type="event">Iran war.Oil prices have increased by four percent, with benchmark Brent crude hitting $105 a barrel after the biggest rise in attacks on shipping since the Iran-war" class="entity-link entity-event" data-entity-id="38748" data-entity-type="event">Iran war began spurred trader concerns about further supply disruptions.Brent crude futures were up $4.05, or four percent, at $105.26 a barrel by 1215 GMT on Thursday. United States oil topped $100 a barrel for the first time since May, as West Texas Intermediate crude futures CLc1 rose $3.99, or 4.15 percent, to $100.04.Recommended Stories list of 4 itemslist 1 of 4Hong Kong court rules Dow Jones tried to stop journalist taking union rolelist 2 of 4The Trump loyalty test: Will his supporters ever disagree with him?list 3 of 4Trump promises $5,000 payouts if GOP wins midterms: Can the US afford it?list 4 of 4Who is Trump trying to exclude from 2030 US census and why does it matter?end of listBrent prices have surged by more than 30 percent from lows touched in early August, as a permanent agreement between the US and Iran to cease attacks never materialised and fighting resumed.Iran-aligned Houthis seized control of Yemen’s port of Mocha on Thursday, further threatening Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days.“The recent run-up in prices lays bare the market’s approach: this conflict will last longer than anticipated even a month ago, let alone at the beginning of the summer. If oil supply and exports are diminished, the oil balance remains tight and prices remain elevated,” PVM analyst John Evans said.Iran said it had attacked 10 ships near the Strait of Hormuz on Wednesday, after the US hit five Iranian oil tankers. Iran’s Islamic Revolutionary Guard Corps said it would escalate its response to any further attacks.While fears of prolonged and more severe supply disruptions in the Gulf have lifted Brent above $100, analysts say the durability of the rally will hinge on China.