Oil Prices Soar to $105 as Tanker Attacks Fuel Rate Hike Fears

Oil prices surged to a four percent increase on Thursday, pushing Brent crude futures to $105.26 per barrel and US oil above $100 for the first time since May.

The spike was triggered by escalating attacks on oil tankers in the region, with Iran-aligned Houthis seizing control of Yemen's port of Mocha and further restricting Red Sea traffic.

PVM analyst John Evans warned that the conflict will likely last longer than anticipated, leading to diminished oil supply and exports, which could keep prices elevated.

China's stepped-up purchasing of crude in recent weeks has boosted physical markets, but a pullback in imports could temper market gains.

The increase in oil prices is fueling worries about inflation and putting pressure on the bond market, with traders now betting on a nearly 70 percent chance that the Fed will raise interest rates next week.