JOHANNESBURG - The price of oil is once again above $100 per barrel.
On Monday, it fell below that level for the first time in a month, on hopes of a deal between the US and Iran.
The price of Brent Crude began rising again after fresh fighting in the Strait of Hormuz punctured a ceasefire.
The US military launched strikes on Iranian minelaying vessels and missile launchers. Iran responded by launching missiles at American planes.
READ | WTI crude price falls over 5% despite new US strikes on Iran
Despite fresh hopes of a peace deal, oil prices remain volatile.
$100 a barrel has become a significant market threshold, and fears about a prolonged conflict have often pushed it above that level.
The effective closure of the Strait of Hormuz has resulted in the biggest supply disruption of oil in history.
And without a supply resumption, nightmare scenarios are possible.
JP Morgan has predicted inventories will run dry this month and it warns that, after that, oil price increases will become exponential.