Global crude oil prices breached the $100 per barrel mark on Wednesday for the first time since July, driven by intensifying military exchanges between the United States and Iran that have severely disrupted shipping routes through the Strait of Hormuz.

The sharp price rally followed a statement from U.S. Central Command confirming that American forces destroyed five Iranian Islamic Revolutionary Guard Corps (IRGC) oil tankers in recent strikes. In response, the IRGC warned all commercial oil tankers to immediately evacuate Kuwaiti and Bahraini waters, heightening fears of further supply chokepoints along the crucial transit corridor, through which one-fifth of global crude normally flows.

Brent crude oil futures rose roughly 2.7% to trade above $100.50 per barrel, while U.S. West Texas Intermediate traded up 2% near $95 per barrel. The price surge comes amid broader regional instability that has kept energy markets volatile since fighting near the Strait triggered large-scale releases of emergency crude reserves earlier this year.

The direct impact is already reaching consumers at the pump. According to AAA, the U.S. national average for regular gasoline stands at $4.22 per gallon—a 41% increase since the conflict broke out—while diesel prices hit a new record high of $5.94 per gallon, threatening to push transport costs and broader inflation higher across global supply chains.