Oil Prices Soar Past $100 as Global Markets Tumble
Global stocks took a hit on Thursday as oil prices surged to their highest levels since July. The Brent crude price broke through the $100 barrier, reaching a high of $101.94, while West Texas Intermediate peaked at $97.79.
The rally is largely driven by resurgent Middle East hostilities, including attacks on vessels in the Strait of Hormuz and the ongoing conflict between Saudi Arabia and Yemeni rebels. This has fanned speculation that central banks will need to hike interest rates to combat inflation, with US diesel prices already at a record $6 per gallon.
The European Central Bank is expected to lift borrowing costs on Thursday, while investors await crucial consumer price data from the US that could influence the Federal Reserve's decision on whether to raise rates next week.