$100 Oil Returns as Iran Tensions Spark Global Economic Jitters
Oil prices surged past $100 a barrel on Wednesday for the first time since early July, driven by renewed concerns about fighting in the Gulf region.
The surge came after the United States destroyed several Iranian oil tankers over the weekend in response to Tehran's attempted attacks on American warships. Energy facilities in Saudi Arabia were also attacked by Iran-allied militant groups, adding to fears about constrained supplies that could put more pressure on prices.
Brent crude surpassed $100 a barrel, while West Texas Intermediate, the US benchmark, jumped to $95 a barrel. Both are the highest levels since an interim peace deal was reached earlier this summer.
The Federal Reserve's efforts to bring inflation back to its 2% target have been complicated by the energy shock. Central banks typically try to look through spikes in energy prices, but the sustained pressure on energy costs is increasing the risks those increases spread deeper into the economy.