Brent crude futures climbed above $100 a barrel on Wednesday for the first time since July 24 as renewed US-Iran attacks and disruptions around the Strait of Hormuz heightened fears of prolonged supply shortages and sent fresh pressure through global energy markets.
Reuters reported that Brent futures rose $2.88, or 2.94%, to $100.80 a barrel by 1210 GMT after reaching $100.95. US West Texas Intermediate crude also rose 2.76% to $95.60, its highest level since early June.
The latest price surge followed a sharp escalation in the six-month-old conflict. US forces struck multiple Iranian oil tankers, while Iran attacked vessels near the Strait of Hormuz and a US base in Jordan. Iran-backed Houthi forces also attacked Saudi energy facilities, threatening both oil production and shipments through the Red Sea.
Reuters reported that oil flows through Hormuz have fallen sharply. After reaching about 8 million to 9 million barrels per day in the week before fighting resumed on August 30, flows have more recently dropped below 2 million barrels per day, according to Rystad Energy. A tanker carrying about 2 million barrels of Iraqi fuel oil was also struck by a drone in Iraqi waters on Wednesday, while the UKMTO reported that several merchant vessels had been hit by disabling fire.
The disruption matters because the Strait of Hormuz is one of the world’s most important energy chokepoints. The US Energy Information Administration estimates that about 20.9 million barrels of oil per day passed through the strait in the first half of 2025, equivalent to about one-fifth of global petroleum liquids consumption. About 89% of crude oil and condensate moving through Hormuz went to Asian markets, making the region particularly vulnerable to prolonged disruptions.
The Philippines is also exposed to the shock. Department of Energy data show that the country’s crude oil imports are heavily dependent on the Middle East, with Saudi Arabia, the United Arab Emirates and Iraq accounting for the overwhelming majority of crude imports in 2024.
The impact is already being felt locally. The Philippine News Agency reported that the Department of Energy announced increases of as much as ₱4.69 per liter for gasoline, ₱5.18 for diesel and ₱5.58 for kerosene effective September 8, citing intensified Middle East hostilities and a weaker Philippine peso as factors behind the increase.
The energy shock could extend beyond fuel prices if the conflict continues. The Philippine Energy Department previously warned that the Middle East crisis could affect the timely delivery of oil, coal and natural gas, fuels that support more than 70% of the country’s power generation.
For Asian economies, the stakes are even higher. The EIA estimates that China, India, Japan and South Korea together accounted for 74% of crude oil and condensate flows through Hormuz in the first half of 2025. Prolonged disruption could therefore raise transportation, electricity and manufacturing costs across the region and add to inflationary pressure.
The latest surge also underscores how quickly geopolitical conflict can translate into higher costs worldwide. Reuters reported that European diesel futures were around $199 a barrel on Wednesday, while refining margins have reached record levels amid tightening supplies.
With shipping through Hormuz severely reduced and attacks spreading to other regional energy routes, traders are increasingly pricing in the possibility that supply disruptions will persist. For oil-importing countries such as the Philippines, the duration of the conflict may ultimately determine how much further fuel and other energy-related costs rise.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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