Middle East Unrest Drives Oil Prices to $100 a Barrel

Oil prices skyrocketed more than 6% on Thursday to exceed $100 a barrel due to escalating tensions in the Middle East. The sharp price increase was driven by attacks targeting shipping routes, with both Brent crude and West Texas Intermediate recording significant gains.

Tensions between the U.S. and Iran have intensified after Iran-backed Houthis seized Yemen's Mocha Port, increasing risks throughout the Red Sea and Gulf. Threats now extend beyond the Strait of Hormuz, potentially impacting regional export routes and energy infrastructure.

The U.S. has warned of possible retaliatory action against key Iranian sites. Analysts noted that China's increased oil purchases following a period of low demand have bolstered physical crude markets, offsetting some of the bearish pressures.