Oil Price Roller Coaster Sparks Global Inflation Fears
The global energy market is facing a prolonged shock due to ongoing conflicts in Iran, Yemen, and Iraq. The price of Brent crude has already approached $110 a barrel, before falling to $92 as talks between the US and Iran resumed. Energy expert Dr. Amit Mor warns that even if a ceasefire is reached, it could collapse, as happened in June.
The Houthis' control of large areas of Yemen and coastal territory along the Red Sea has pushed oil prices up by more than 10% to $109 a barrel. As long as the straits remain blocked and the pipeline is not restored, prices are expected to remain high. Saudi Arabia's weakness in the face of these threats is worsening uncertainty in the markets.
The surge in oil prices is hitting economies around the world just as inflationary pressures appeared to be easing. An OECD report published last week revised upward the inflation forecast for G20 countries to 4.1% in 2026 and 3.6% in 2027, citing surging energy prices as a 'tax on consumption.'