Brent Crude Tops $100 as US-Iran Conflict Escalates
The conflict between the US and Iran has escalated further as Houthi forces seized the strategic Yemeni port city of Mokha on Thursday.
The development comes after Iranian-backed Houthis attacked southwestern cities in Saudi Arabia for two consecutive days, raising concerns about further escalation between the sides.
Iran's retaliation against US military assets came after the US attacked five Iranian oil tankers in response to an Iranian attack on a US Navy warship. The US Central Command (CENTCOM) said it destroyed the IRGC crude oil carriers M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco in the Gulf of Oman as well as M/T Derya near Kharg Island.
The escalating tensions have pushed oil prices sharply higher, with Brent crude rising above $100 a barrel for the first time since July 2024. President Donald Trump predicted that the conflict could end after the November midterm elections, saying 'They're desperate to try and affect the election so we can get a nice, weak group of people in there and leave them alone and let them have their nuclear weapon.'
The EU faces inflation from rising energy costs as higher interest rates make borrowing more expensive. The European Central Bank raised its deposit facility rate by 25 basis points to 2.5% on Thursday.