Oil prices surged above $100 a barrel on Thursday, with Brent crude climbing as high as $109.20 per barrel, as escalating attacks on shipping around the Gulf intensified concerns about disruptions to global crude supplies.
US West Texas Intermediate (WTI) crude also crossed the $100 mark for the first time since May, rising 6.7% to $102.50 per barrel.
The latest rally represents a sharp reversal for oil markets. Brent has now risen by more than 50% from lows recorded in early July, when a ceasefire in the conflict had eased concerns about supply disruptions.
The latest price spike followed an escalation in attacks on vessels around the Strait of Hormuz, one of the world’s most important oil-shipping routes. Tanker traffic through the waterway remains restricted amid naval blockades by Tehran and Washington.
The Iran-aligned Houthis also seized Yemen’s strategic port of Mocha on Thursday, adding to concerns over shipping through the Red Sea.
Iran said it attacked 10 ships near the Strait of Hormuz on Wednesday after the United States struck five Iranian oil tankers. Iran’s Islamic Revolutionary Guard Corps subsequently warned that it would escalate its response to further attacks.
Higher Oil Prices Increase Inflation Concerns
The oil surge has also intensified concerns about inflation in the United States and complicated expectations for the Federal Reserve’s next interest-rate decision.
The average price of regular petrol in the US has risen to almost $4.28 per gallon, according to the American Automobile Association.
Higher fuel costs are also expected to feed into the prices of goods transported by road, potentially adding to broader inflationary pressures.
For oil-importing economies, including Nigeria, sustained crude prices above $100 could have significant implications for inflation, transportation and energy costs, while potentially providing stronger export earnings for oil-producing countries.
