$100 Oil: Global Markets Buckle Under Escalating Conflict Tensions

The recent surge in Brent crude prices to over $100 per barrel has sent shockwaves through global markets, causing concerns about high inflation and its impact on consumers.

The spike is largely attributed to a brutal escalation of the US-Iran conflict that has choked off critical shipping corridors in the Persian Gulf. The Strait of Hormuz, which accounts for nearly one-fifth of the world's petroleum trade, has become a war zone, causing global supply chains to shatter.

With international benchmark crude breaching triple digits, financial shockwaves are rippling instantly, affecting not only fuel prices but also shipping costs, manufacturing input costs, and even airline ticket prices. Central banks are now scrambling to figure out whether to cut interest rates or fight renewed price pressures.