Middle East Escalation Sends Crude Prices Soaring Past $100 a Barrel

The Middle East conflict escalated on Friday after the US launched fresh strikes on Iran following an attack by Tehran-backed Houthi rebels on oil tankers in the Red Sea. The Houthi attacks marked a significant escalation, pushing crude prices past $100 a barrel for the first time since May.

The international oil benchmark Brent crude surged 8% to reach this milestone, with prices hovering just above $100 on Friday morning. The US military insisted that the Strait of Hormuz remains 'open for transit', despite Iran's efforts to strongarm tankers into paying for safe passage.

US President Donald Trump vowed to use frozen Iranian assets to pay for any damage to shipping, a move Tehran warned would set an 'incendiary precedent'. The US military has been conducting attacks on Iranian targets for the past 13 nights, with the latest strikes hitting the southwestern city of Ahvaz and nearby Omidiyeh.

United Nations Secretary-General Antonio Guterres expressed alarm over the escalating conflict, warning that it is 'getting out of control' and teetering on the edge of the unimaginable. European Central Bank President Christine Lagarde warned of an energy shock that could intensify further and push up inflation, prompting speculation about a September eurozone interest rate hike.