Oil Tops $100 Per Barrel Amid Escalating Middle East Conflict

Oil prices surged past $100 per barrel for the first time since July 24 as the conflict in the Middle East escalated. Benchmark Brent crude futures rose above the symbolic barrier, pushing up energy stocks to a four-month high.

Oil majors BP and Shell led the gains, rising 1.5% and 1%, respectively. However, heavyweight banks HSBC, Barclays, and Lloyd Banking Group were dragged down, falling 1.2%, 1.6%, and 1.3%, respectively.

Dan Coatsworth, head of markets at AJ Bell, attributed the market's reaction to 'hypothetical inflation worry.' He noted that investors are closely watching key US inflation reports and economic growth data in the UK this week, which could influence interest rate expectations from central banks.