Oil Tops $100 Per Barrel Amid Escalating Tensions in Middle East
Oil prices surged past $100 per barrel on Wednesday as tensions in the Middle East intensified, driving concerns about energy-driven inflation and sending European stocks to one-week lows.
The Brent crude futures price rose by up to 2.3% to a session high of $100.19, breaching the symbolic price level for the first time since July 24. The latest surge in oil prices has driven concerns that higher inflation will prompt central banks to keep monetary policy tighter for longer.
'$100 is a round number, a psychological number,' said Societe Generale multi-asset strategist Manish Kabra. 'We think crude needs to hit $150 to create a major drawback in demand cycle.'
The pan-European STOXX 600 index fell by 0.7% as economically sensitive industrial and banking stocks declined.