Brent Crude Tops $100 as Middle East Tensions Escalate

The price of Brent North Sea oil, the international benchmark for crude, surpassed US$100 per barrel on September 9 due to fresh flare-ups in the Middle East. The conflict between Iran and the US has been ongoing for seven months, with no signs of resolution, fueling concerns about supply disruptions.

Iran's attacks on a US military base in Jordan and threats against oil tankers off Kuwait and Bahrain have heightened tensions. Saudi Arabia and Iran-backed Houthis in Yemen exchanged strikes, targeting oil facilities near the Bab al-Mandab chokepoint, a vital shipping route for Saudi oil.

The surge in energy costs has kept inflation elevated globally, putting pressure on central banks to hike borrowing costs. The European Central Bank is expected to raise interest rates on September 10, while the US Federal Reserve's decision next week will be closely watched.

Market analyst Fawad Razaqzada noted that the continuing conflict in the Middle East is keeping concerns over supply disruptions and inflationary consequences of elevated oil prices alive. He added that a sustained rise in oil prices would risk reversing progress on inflation, squeezing consumers and businesses.