Crude oil prices climb above $100 per barrel

Crude oil prices have risen above $100 per barrel for the first time since May. U.S. stock markets and government bond markets declined after Donald Trump said he was considering a large-scale military strike on Iran.

Global benchmark Brent crude oil gained 7% on Thursday to settle at $100.69 per barrel. The rally was driven by attacks on vessels in the Red Sea by Iran-backed Houthi militants in Yemen, raising concerns over renewed disruptions to global energy supplies and the risk of another inflationary shock. During Asian trading on Friday, Brent remained around $100.50 per barrel.

The sharp rise in crude oil prices accelerated after the Houthis claimed responsibility for attacks on two Saudi oil tankers following their announcement earlier this week of a maritime blockade of Saudi Arabia. The developments further intensified fears that the United States and Iran could once again slide into a full-scale conflict.

Analysts believe that if the current escalation continues, crude oil prices could exceed the $139 per barrel reached after Russia’s full-scale invasion of Ukraine in 2022, or even surpass the all-time record of $147 per barrel set in 2008.

Against this backdrop, the Nasdaq Composite Index, which includes more than 3,000 U.S. and international companies, primarily from the technology sector, fell 2.2% on Thursday. In addition to the oil shock, weaker-than-expected earnings from Alphabet and Tesla triggered a broad sell-off in technology stocks.

The surge in crude oil prices also weighed on the bond market. Investors increasingly expect major central banks to raise interest rates more aggressively to contain another wave of inflation.

The European Central Bank left interest rates unchanged on Thursday but warned that “the full inflationary impact of the energy shock is still ahead.”

Brent crude last traded above $100 per barrel on May 26. However, prices fell sharply in June after an agreement between Washington and Tehran to extend the ceasefire and reopen the Strait of Hormuz raised hopes for a rapid recovery in global energy supplies.

Higher fuel prices in the United States, where the average gasoline price this week exceeded $4 per gallon, could fuel voter dissatisfaction ahead of the midterm elections in November.