Brent Crude Surges Past $100 Amid Middle East Tensions

Brent crude prices have surged above $100 per barrel for the first time since May, driven by escalating US-Iran tensions and Houthi attacks on Red Sea shipping.

The price increase of more than 6% has extended gains with Brent settling up 7% at $100.69/bbl, a weekly rise of 14.2%. WTI also climbed 6.2% to $92.19/bbl, taking its weekly gain to 12%, as attacks on two Saudi Arabian tankers raised concerns over supply disruptions via the Strait of Hormuz and the Red Sea corridor.

The move in crude has also fed into higher expectations for Federal Reserve rates and global bond yields. Economists estimate that every sustained 10% increase in crude prices adds about 0.4% to global inflation, which will likely delay expected interest rate cuts.