What happened
Oil prices surged past $100 a barrel on Thursday for the first time since May, as escalating conflict in the Middle East stoked fresh fears over global energy supplies. Brent crude, the international benchmark, jumped more than 5% following several days of gains, driven by intensified US military strikes against Iran and attacks on oil tankers in the Red Sea by Houthi militia. The attacks threaten a key export route that Saudi Arabia has used to bypass the Strait of Hormuz, adding to supply concerns.
Why it matters for the market
Gas prices have also risen steadily over the past month, with the UK benchmark climbing to around 150p per therm from about 98p on June 26. The price spike reflects broader market anxiety over potential disruptions to energy flows from the region.
On Thursday, Iran's Islamic Revolutionary Guards Corps reported that three tankers had abandoned an attempt to pass through the Strait of Hormuz after an explosion aboard one caused it to catch fire. A temporary ceasefire between the US and Iran has collapsed, and US Secretary of State Marco Rubio stated this week that those in charge in Iran are "not ready to make a deal."
What traders should watch
For crypto markets, higher oil prices can fuel inflation expectations and weigh on risk appetite, potentially increasing volatility in intraday speculative trading. Traders should monitor energy price moves closely as they may influence broader market sentiment and liquidity conditions.
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