Brent Crude Breaks US$100 Barrier Amid Iran-US Tensions

The international oil benchmark Brent breached the US$100 per barrel threshold on Wednesday for the first time since late July, amidst renewed tensions between the US and Iran.

The spike in crude prices, which rose over three percent to US$101.21 a barrel, weighed heavily on global stock markets, with investors fretting that major central banks will raise interest rates to curb inflation.

In the US, the Dow closed 0.8 percent lower, while Europe's markets faltered, with Paris ending the day nearly two percent down. European natural gas prices surged to their highest level since early 2023, topping 80 euros per megawatt-hour.

Kathleen Brooks, research director at XTB trading group, warned that the US$100-a-barrel mark 'is a psychological level that matters for markets' and could have far-reaching consequences for businesses and consumers alike.