Brent Crude Surges Past $106 as ECB Hikes Interest Rate and Warns of Higher Inflation
European stocks fell across the board on Thursday as Brent crude hit $106.92 a barrel, up 5.6% from earlier in the day.
The European Central Bank (ECB) raised its key interest rate by 25 basis points to 2.50%, as widely expected, due to price pressures triggered by the Middle East conflict.
New projections by ECB staff see headline inflation averaging 3.0% in 2026, before easing to 2.5% in 2027 and 2.1% in 2028.
Neil Wilson, UK investor strategist at Saxo Markets, said the ECB hiked as expected and raised its outlook for inflation but didn't explicitly lean into needing more hikes.
Brent crude was up 5.6% at $106.92 a barrel, while West Texas Intermediate (WTI) was 5.8% higher at $101.57 due to Yemen's Iran-backed Houthis reportedly seizing a key Red Sea port in Yemen.