Global oil hits $105 per barrel and bond yields surge

Oil prices surged Thursday, with Brent crude hitting $108 per barrel for the first time since May, as traders brace for a more prolonged supply shock caused by the Iran war. Oil prices have climbed back above the $100 per barrel mark this week as fighting in the Straight of Hormuz and Red Sea has intensified. The US and Iran have traded strikes, while the Iran-backed Houthis have attacked Saudi Arabia and ignited tensions in the Bab al-Mandab Strait. Brent crude, the global oil benchmark, rose as much as 7.1% and hit $108 per barrel before settling at $107.63, up 6.34% on the day. It was Brent’s highest settle level since May 19 and its biggest one-day jump in six weeks.