$100 Oil: Global Markets on High Alert as US-Iran Tensions Escalate

Oil prices have surged above $100 a barrel as US and Iranian attacks in the Middle East intensify, causing concern for global markets. The price of Brent crude, an international benchmark, reached $101.21 on Wednesday, its highest level since July. This marks a significant milestone for oil markets, with experts warning that prolonged high prices could exacerbate economic difficulties.

According to Lukman Otunuga, market research head at global broker FXTM, the main concern is not just the psychological impact of $100 oil but what this means for inflation. 'Brent breaking above $100 is a major psychological milestone for markets,' he noted.

The recent attacks by US and Iranian forces have disrupted shipping through the Strait of Hormuz, a vital waterway that carries nearly one-fifth of global oil supplies. As a result, prices have fluctuated significantly over the past six months, with Brent briefly reaching $120 a barrel in February.