Brent Oil Nears $100 After 5% Surge on Middle East Attacks

Global oil prices surged on Thursday, with Brent crude climbing nearly 5 per cent to approach the $100-per-barrel mark after renewed attacks in the Middle East heightened fears of disruptions to global energy supplies. The sharp rise followed reports that Yemen's Houthi rebels attacked oil tankers in the Red Sea, while tensions between the United States and Iran continued to escalate, raising concerns over the security of key shipping routes.

Brent crude briefly traded above $98 per barrel, its highest level in weeks, as investors reacted to the growing geopolitical risks. Analysts warned that any prolonged disruption to shipping through the Red Sea or the Strait of Hormuz, a vital route for global oil exports, could tighten supplies further and push prices above the $100 threshold.

The price surge has fuelled fresh concerns about inflation and economic growth, as higher crude oil prices are expected to increase the cost of fuel, transportation and goods worldwide. Financial markets also came under pressure, with investors fearing that sustained energy price increases could delay expected interest rate cuts by major central banks.

Energy analysts said oil markets are likely to remain highly volatile in the coming days, with prices largely dependent on developments in the Middle East and whether further attacks threaten global oil production and shipping.