Oil prices hit $100 per barrel after fresh Red Sea attacks increased fears over Middle East supply. Here’s what it means for global markets and fuel prices.
Oil prices have climbed above $100 per barrel for the first time since May. The jump followed fresh attacks in the Red Sea that raised fears about global oil supply. Many traders now worry that the conflict could disrupt crude exports from the Middle East. As a result, average petrol prices in the United States also rose to $4.09 per gallon.
The latest tension started after Yemen’s Iran-backed Houthi group claimed it attacked two Saudi oil tankers in the Red Sea. Soon after, US President Donald Trump warned that Washington would hold Tehran responsible for any future Houthi attacks in the Strait of Hormuz. He also threatened Iran with “major military punishment” if such attacks continue. The warning has increased concerns about a wider regional conflict.
Meanwhile, both sides continue to exchange strong words. US Secretary of State Marco Rubio described Trump’s Iran policy as “a head for an eye.” His comment came after Iran’s Foreign Minister Abbas Araghchi said the country’s defence doctrine is “an eye for an eye.” The sharp statements have added to fears that diplomacy may become even more difficult in the coming days.
The conflict has also spread beyond the Red Sea. Jordan’s military said Iran fired four missiles toward its territory, but three were intercepted. At the same time, Kuwait reported that Iranian forces launched a drone attack near its border crossing with Iraq. In another development, Iranian state media said US airstrikes killed two people at an Iraq-Iran border crossing.
As the crisis deepens, investors are watching closely because any disruption in Middle East oil supply could push fuel prices even higher across the world.
