Global crude oil prices surged above the key $100-a-barrel mark for the first time since May, driven by escalating geopolitical tensions in the Middle East, concerns over the Strait of Hormuz.
According to international media reports, Brent crude, the global benchmark, rose by more than 6% on Thursday, crossing the psychologically significant $100-per-barrel threshold as investors rushed to secure supplies amid fears that a widening regional conflict could severely disrupt global oil exports.
Market sentiment has been shaken by the ongoing US-Iran confrontation, uncertainty surrounding the Strait of Hormuz a critical transit route for global energy supplies and attacks on commercial vessels in the Red Sea.
The latest spike in oil prices has also been fuelled by attacks on merchant shipping by Yemen’s Iran-backed Houthi group.
In recent days, the Houthis have targeted Saudi oil tankers and other commercial vessels, raising concerns over the security of one of the world’s busiest maritime trade routes.
The Red Sea and the Bab el-Mandeb Strait are vital shipping corridors linking Europe, Asia and the Middle East, through which a substantial share of global oil exports and commercial cargo passes.
US President Donald Trump condemned the attacks, holding both the Houthis and Iran responsible. He said Washington considers the Houthis to be backed by Tehran and warned that the United States would not hesitate to take major military action against both the Houthis and Iran if attacks on shipping continue.
Energy analysts warned that if crude prices remain above $100 per barrel, the world could face higher fuel, electricity and transportation costs, increasing inflationary pressures and posing fresh risks to the global economy.
