Oil Price Topples $100 Amid Middle East Hostilities

The price of Brent crude oil has surpassed $100 per barrel for the first time since May, sparking concerns about the impact on global markets. This marks a significant increase from last week's prices and has been driven by intensifying hostilities in the Middle East.

The recent attacks on Saudi energy infrastructure by Houthi rebels have contributed to the rise in oil prices, as well as Iran's claim that it had struck a US base in Jordan. The development has raised fears of a supply squeeze due to the loss of Iranian tanker capacity, which would likely serve Chinese orders.

The hostilities across the Middle East are causing disruptions to global energy markets, with Brent crude oil prices up almost 50% over the past 12 months. Wholesale gas prices in the UK have risen by 125% compared to September 2025, while natural gas stocks in Europe are at their lowest levels for 12 years.

Neil Wilson, Saxo UK's investor strategist, stated that markets are pricing in a longer war and more disruption to global energy markets. The implications of this for global markets include a structurally higher inflation dynamic alongside fiscal pressures.