Why did oil top $100 a barrel?

What pushed crude above $100

A sharp jump in oil prices has been driven by a real and growing shortfall of accessible supply as fighting around the Strait of Hormuz and targeted attacks on energy infrastructure make the route and some export hubs unsafe. Markets reacted to three linked developments:

• Shipping disruption: Iran’s effective closure and attacks around the Strait of Hormuz have stranded tankers and halted regular traffic through the waterway that carries a large share of global seaborne oil.
• Strikes on export hubs: U.S. and Israeli strikes — including operations that the Pentagon said struck Kharg Island, Iran’s major oil export terminal — and drone attacks on facilities such as Fujairah and a Dubai airport fuel depot have damaged handling and storage capacity.
• Market psychology and trading flows: Traders priced in the risk of prolonged disruption, pushing Brent and U.S. crude sharply higher as global spare capacity and inventories tightened.

Why it matters for the United States

• Consumers are already feeling the effects at the pump; U.S. gasoline prices have jumped sharply since the conflict began.
• The surge complicates monetary policy: higher energy costs increase inflationary pressure, narrowing room for the Federal Reserve to cut interest rates.
• Policymakers are using non-market tools — emergency reserve releases and diplomatic outreach to major consumers and producers — while energy executives warn the crunch could worsen if the strait remains blocked.

The price spike reflects both physical damage to oil infrastructure and investors’ fear the disruptions could persist — a combination that keeps energy markets volatile until shipping and export capacity are secured.