Global oil hits $105 per barrel and bond yields surge
Global oil prices have surged past $100 per barrel due to escalating conflict in the Middle East and supply chain concerns in the Strait of Hormuz. Analysts warn that the ongoing war could lead to prolonged energy price instability through next year.
Why it matters
Rising oil prices have immediate inflationary effects on the global economy and impact energy security for major nations.
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.
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