Oil Prices Spike to $100 as Iran-Backed Militants Strike Saudi Tankers
Oil prices surged to $100 per barrel for the first time since May after attacks by Iranian-backed Houthi militants in the Red Sea. The incident has raised concerns about global supplies and a potential inflation shock.
The Brent crude price rose more than 6% to $100, following the Houthis' attack on two Saudi Arabian tankers in the Red Sea. This comes as tensions between the US and Iran escalate, with Washington warning that it will impose 'major military punishment' if the attacks continue.
The targeting of Saudi ships has raised fears that the Houthis may close the Bab al-Mandab Strait, a vital route for Saudi oil exports. The strait connects the Red Sea to the Gulf of Aden and the Indian Ocean, and its closure would severely impact global energy markets.