Oil prices surge past $100 per barrel as Houthi attacks escalate Middle East tensions
Global oil prices surged past $100 per barrel on Thursday, marking the first time in over two months that Brent crude exceeded this threshold. The spike followed attacks by Yemen’s Houthi rebels on oil tankers in the Red Sea, further escalating tensions in the Middle East. Yle reports that the international benchmark for oil climbed above $100 after the strikes, which expanded the conflict into a new front.
The price of oil also surpassed €100 per barrel late in the afternoon, according to MTV Uutiset, the first time since May 22. The sharp increase was driven by renewed military operations between the United States and Iran, as well as heightened instability in key oil transit routes. The Houthi rebels have intensified their campaign, announcing plans to impose a naval blockade on Saudi Arabia, a major oil exporter. The Strait of Hormuz, a critical chokepoint for global oil shipments, remains a flashpoint amid the ongoing conflict.
The surge in oil prices sent shockwaves through financial markets, particularly in the U.S., where Wall Street stocks plunged early Thursday. Yle notes that Tesla and Alphabet, Google’s parent company, saw significant declines, with Tesla’s stock dropping over 10% and Alphabet’s falling by approximately 6%. Investors appear to be reacting to concerns over prolonged high oil prices and their potential impact on global economic stability.
Jack Ablin, an expert at U.S. asset management firm Cresset Capital, told Yle that the Middle East conflict shows no signs of de-escalation, raising fears that elevated oil prices could persist for months. He also highlighted a shift in investor sentiment toward the technology sector, where optimism is being tempered by skepticism over rising capital expenditures in new technologies.