NEW YORK: Oil prices jumped Thursday (Mar 12) with Brent crude settling above US$100 a barrel for the first time since August 2022, as Iran vowed to make the United States regret launching its war against the country.

The price of Brent crude surged 9.2 per cent to US$100.46 a barrel, while its US equivalent, West Texas Intermediate, climbed 9.7 per cent to US$95.73 a barrel.

Stocks retreated as fears of a prolonged conflict in the Middle East took hold, with US and Israeli strikes on Iran continuing and Tehran’s retaliation bringing trade through the Strait of Hormuz to a virtual standstill. 

Markets were not assuaged by US President Donald Trump’s proclamation that stopping Iran from getting a nuclear weapon was more important to him than controlling oil prices.

“Markets are certainly moving with oil prices and the ongoing concerns about energy disruptions,” said Angelo Kourkafas, a senior analyst at Edward Jones.

“There is less belief compared to the last couple of days now, at least from an investor’s perspective, that there’s going to be a quick off-ramp and a quick resolution to this conflict,” he said.

Energy Secretary Chris Wright acknowledged that the US military was currently “not ready” to escort tankers through the critical Strait of Hormuz.

Brent is up around 38 per cent from the eve of the conflict, which began on Feb 28 when the United States and Israel launched airstrikes against Iran. It is up nearly two-thirds from the start of the year.