Oil Prices Surge to $100 per Barrel Amid Middle East Tensions

Oil prices surged Thursday to their highest level since May due to increased fighting in the Middle East, which threatens to slow global crude flow. Brent oil, the international standard, jumped 7% to $100.69 per barrel. This is a significant increase from just a few weeks ago when it dropped below $72 per barrel.

The Strait of Hormuz and another key shipping route in the Red Sea are under attack, causing concern about global supply chains. President Donald Trump has threatened 'major military punishment' against Houthi rebels in Yemen if they continue to target ships.

Higher oil prices will likely lead to increased inflation, which could prompt the Federal Reserve to raise interest rates for the first time since 2023. This would slow economies and negatively impact stock prices.