Oil prices breach $100 a barrel as Gulf clashes escalate
Brent crude futures surged past $100 per barrel following mutual claims of strikes on vessels and missile attacks in the Middle East, while European stocks fell sharply.
Brent crude oil futures rose to a session high of $100.19 on Wednesday, breaking through a symbolic price level for the first time since July 24. The surge followed reports that Iran fired ballistic missiles at a U.S. base in Jordan and that both sides claimed responsibility for hitting merchant vessels in the Gulf. In early trading, U.S. benchmark West Texas Intermediate futures held near $94 per barrel. Iranian state media stated its Revolutionary Guard fired missiles at two U.S. vessels and eight additional oil tankers in response to American claims of destroying five Iranian crude tankers on Tuesday. The United Kingdom Maritime Trade Operations said several merchant vessels were hit by disabling fire in the northern Gulf and Gulf of Oman, noting one vessel was listing near Port Rashid, United Arab Emirates. These events triggered concerns about energy-driven inflation, causing the pan-European STOXX 600 index to fall 0.7 percent. Manish Kabra, a strategist at Societe Generale, noted that while $100 is a round number, developed markets require prices near $150 to face major demand-cycle drawbacks.
