$100 Brent Crude Oil Prices Spark Global Inflation Fears

Brent crude oil prices have surpassed $100 per barrel for the first time since July 2026, largely due to concerns over supply disruptions caused by escalating US-Iran tensions.

The conflict has led to attacks on oil tankers and Saudi Arabia's energy facilities, which could further disrupt shipments through the Strait of Hormuz and the Red Sea. As a result, Brent crude prices jumped 2.72% to $100.60 per barrel at the time of writing.

Quintex Intel global strategist Stephen Innes believes that elevated oil prices will persist well into 2027 unless there is credible diplomacy and normalization of shipping flows. He estimates that a significant part of the current price reflects war risk, shipping uncertainty, and potential supply disruptions rather than an immediate shortage of crude oil.

Innes also noted that sustained $100 per barrel oil would add to global inflation and make central banks more cautious about easing policy, particularly in energy-importing economies. However, he emphasized that the current situation is not equivalent to the 1990s' oil shock due to increased electric vehicle penetration and a broader energy transition.

In Malaysia, higher oil prices have both benefits and drawbacks. On one hand, increased revenues for Petronas could provide significant cushioning, but prolonged $100 oil also raises fuel, freight, transport, and broader input costs throughout the economy.