Oil Surges Past $100 Amid Escalating Middle East Tensions
Oil prices surged past $100 a barrel on Thursday as Iran-backed Houthi rebels targeted Red Sea shipping, escalating tensions in the Middle East and prompting US President Donald Trump to threaten 'major military punishment'.
The international benchmark Brent North Sea oil contract soared seven percent to over $100 a barrel, sparking market turmoil and raising concerns about inflation.
Wall Street stocks endured a downcast session after markets panned earnings reports from Alphabet and Tesla, which saw their shares drop 6.9% and 14.5%, respectively.
The Red Sea attacks added to concerns about oil supply at a time when deliveries through the Strait of Hormuz have been severely impaired, with Saudi Arabia using the Red Sea to export millions of barrels that normally flowed through the strait.