Global oil prices climbed above $100 a barrel on Wednesday, as escalating conflict in the Middle East raised new concerns about disruptions to global energy supplies.
Brent crude futures rose to as high as $100.95 a barrel, while U.S. West Texas Intermediate crude climbed to about $95.60. It was the first time Brent had moved above $100 since July 24.
The latest increase followed renewed attacks on energy infrastructure and shipping routes in the region. Iran-backed Houthi forces have targeted Saudi oil facilities, while military activity involving Iranian tankers and vessels near the Persian Gulf has added to concerns about whether oil shipments can continue normally.
Attention is focused especially on the Strait of Hormuz, one of the world’s most important oil shipping routes. Recent traffic through the strait has fallen sharply, increasing fears that a prolonged conflict could further restrict supply and push energy prices even higher.
Higher oil prices can eventually affect consumers far beyond the Middle East, including through gasoline, transportation and other costs tied to energy.
For global markets, the return of $100 oil is also renewing concerns about inflation at a time when investors are closely watching interest-rate policy and the broader economy.
Sources: Reuters; Associated Press.
By NJ RADAR Team