Oil Prices Soar Past $100 as Tensions with Iran Escalate

Oil prices surged past US$100 per barrel for the first time since July on Wednesday as tensions between the US and Iran escalated, threatening to increase costs for consumers and businesses worldwide.

Brent crude, the international standard, climbed into triple digits, settling at US$101.21 a barrel, while US benchmark crude finished at US$96.05 a barrel.

The recent attacks on oil facilities and ships in the Middle East have raised the risk of further disruptions to global supplies already constrained by war, causing market whiplash throughout the conflict's more than six months.

Lukman Otunuga, market research head at FXTM, noted that Brent breaking above US$100 is a 'major psychological milestone for markets' but the bigger concern is what this means for inflation.