London – Main oil contract Brent North Sea surged toward USD 100 a barrel on Thursday as Houthi rebels targeted Red Sea shipping, raising fears that the Middle East war is widening.
International oil benchmark Brent soared as much as five percent to above USD 98 a barrel after Houthi rebels claimed to have struck two Saudi oil tankers in the Red Sea.
Iran vowed to keep striking the region so long as it remains under attack by United States strikes.
“Investors are in a wary mood… as fresh jitters of worry about the ongoing energy crunch hit sentiment,” said Susannah Streeter, chief investment strategist at Wealth Club.
“With both the Strait of Hormuz and the Red Sea now under increasing pressure, markets are bracing for the possibility that the conflict could disrupt key energy routes, (and) keep oil prices elevated,” she added.
The prospect of higher oil prices also raises the prospect of higher inflation and interest-rate hikes, adding to weak sentiment, analysts said.
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Translated by Guilherme Miranda
