Brent crude rose more than 3 percent and pushed back above $100 a barrel on Tuesday as mounting tension over Iran’s nuclear program sparked concerns about supply threats, while hopes for economic stimulus also supported oil prices along with equities. The U.S. crude contract settled more than 4 percent higher, while the rally sent Brent above $100 for the first time since June 11. Iran said it had successfully tested missiles capable of hitting Israel in response to threats of military action against the Islamic Republic over its nuclear ambitions.”I think this is positioning for geopolitical risk in the Middle East,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis.
Recent data pointing to slowing global growth has fuelled hopes that policymakers in China, Europe and the United States will provide more stimulus to shore up sputtering economies. Brent rose $3.34 to end at $100.68 a barrel, the highest settlement since May 31. Prices reached $101.58, the loftiest intraday price since front-month Brent reached $101.90 on June 11. U.S. crude jumped $3.91 to settle at $87.66 a barrel, the highest close since May 30, after reaching $88.04 intraday.