Oil Prices Soar Above $100 Amid Escalating Tensions in Gulf

Asian stocks retreated on Friday as oil prices surged past $100 a barrel due to escalating tensions in the Gulf, reviving fears of inflation. Brent crude held steady at $100.85 a barrel after climbing 7% overnight to a two-month high of $102.

The conflict has resulted in nearly 40% growth this month alone. Nigel Green, CEO of deVere Group, warned that 'two of the world's busiest shipping corridors are under threat in the same month, and markets are only just beginning to work out what that means.'

With oil back above $100 and the US administration imposing higher tariffs on goods from 60 trading partners, investors are pricing in a one-in-three chance of a rate hike from the Federal Reserve as soon as next week. Markets bet central banks will have to turn more hawkish.