Bank of America warns oil could hit $150 a barrel if US-Iran war drags on

Bank of America has warned that oil prices could climb as high as $150 a barrel should the conflict between the United States and Iran continue, as tensions in the Gulf show no sign of easing.

Only six commodity-carrying vessels passed through the Strait of Hormuz on Tuesday, Reuters reported, underscoring the continued caution among shipping operators navigating the strategic waterway. Iran said its response to the United States would continue until "the aggression" stopped.

The US military said it destroyed three Iranian crude oil tankers on 5 September, adding that an American vessel had evaded an Iranian attack with no casualties reported. The US secretary of state warned that Iran would "lose oil tankers" every time it attacked American ships.

Elsewhere, Iraq said crude oil exports to Turkey would not exceed 33,000 barrels a day, while Bloomberg reported that Baghdad is seeking a higher production quota in an upcoming OPEC+ review. European gas prices jumped 4 per cent to 79 euros per megawatt-hour, according to Al Jazeera. Separately, Sinopec said Chinese oil demand could fall by 8.9 per cent in 2026.