Houthi Attacks Push Oil Prices Over $100 Amid Fed Meeting Fears

Brent crude oil prices surged to $100.64 per barrel on Thursday after Yemen's Houthi rebels claimed to have targeted two Saudi oil tankers in the Red Sea, leading to a significant increase in global energy markets.

The 7% jump in Brent crude and 5.8% rise in US crude oil prices sparked a reaction on Wall Street, with the S&P 500 and Dow Jones Industrial Average each dropping 1% at the opening bell, while the Nasdaq Composite fell 1.8%.

Nigel Green, CEO of deVere Group, warned that the situation poses difficulties for the Federal Reserve's upcoming meeting on July 29. He noted that inflation had risen for three straight months before easing in June, but the current increase in oil prices may already be reversing this trend.

The timing is critical as it could impact the Fed's ability to maintain its current stance on interest rates. Green emphasized that a persistent increase in gasoline prices would not only affect household expenses but also feed into the inflation data that the Fed will examine on July 29.