Brent Oil Surges to $107 Amid Middle East Tensions

Brent oil spiked to $107 a barrel on Thursday, its highest level since May, as rising tensions in the Middle East heightened concerns over global supplies.

The global benchmark extended a rally that saw futures jump to triple figures for the first time since July in the previous session. Renewed fighting has ended a period of relative calm, and the prospect of a lengthy conflict is fanning fears of energy-driven inflation as prices for natural gas and diesel also surge.

Iran signaled it has no intention of backing down in the face of an American naval blockade and will escalate its strikes if the US continues attacking its territory. Meanwhile, Tehran-backed Houthis in Yemen are targeting Saudi Arabian assets, with the Kingdom warning its crude production plunged last month to the lowest since 1990.