Oil Prices Soar Above $100 Amid Escalating Middle East Tensions

The price of oil has reached $100 a barrel for the first time since July as tensions in the Middle East escalate. The jump in crude futures was led by Brent North Sea, which rallied 2.8 percent to $100.65 a barrel.

This development has weighed on stock markets, with investors eyeing interest-rate hikes from major central banks as they bid to keep a lid on consumer prices. European markets were particularly jittery, with Paris shedding nearly two percent in afternoon deals.

Kathleen Brooks, research director at XTB trading group, noted that the $100 price level is 'psychological' and can have far-reaching consequences for businesses and consumers alike. She added that it could ultimately weigh on economic growth.