Oil Prices Surge Past $100 as Iran-US Tensions Escalate
The global stock market has come under pressure as Brent crude oil prices surged past $100 a barrel. This milestone was reached on Wednesday, September 9th, amid escalating tensions between Iran and the US in the Middle East.
The price of Brent crude rose to $100.19, its highest level since July 24th, when the US and Iran had a memorandum of understanding in place. The current price surge is largely driven by rising fears of energy-driven inflation.
The US military attacked five Iranian oil tankers overnight, prompting Iran to retaliate with missile attacks on US forces in Jordan and shipping targets. US Secretary of State Marco Rubio stated that Washington would continue to target Iranian oil tankers in response to attempted attacks on US warships.
Rising oil prices have added to concerns about inflation, which may lead central banks to adopt more restrained monetary policies. The European Central Bank is expected to hike interest rates on Thursday, and next week the US Federal Reserve will meet to determine whether they will follow suit.