Oil Prices Surge Past $100 Amid Escalating Middle East Tensions
Oil prices surged past $100 per barrel for the first time since May as disruptions in the Middle East escalated. Brent crude futures jumped 6% to $100.50 a barrel after attacks on tankers in the Red Sea choked off a second major artery for global oil supplies, alongside Iran's near-closure of the Strait of Hormuz.
The recent uptick in tensions between the US and Iran has led to increased violence, including a new round of strikes by the US military on Iranian targets. This has prompted further retaliation from Iran, prompting warnings from the White House that additional attacks are possible.
The escalating situation is causing concern among investors, with Wall Street indices declining after tech giants Alphabet and Tesla reported cash burn in their recent quarters due to AI infrastructure spending.