Oil prices surge past $100 as Middle East conflicts disrupt shipping

Oil prices surged past $100 a barrel for the first time since May, driven by escalating conflicts in the Middle East that threaten global energy supplies. Brent crude hit $102 before settling near $92, as fighting between the US and Iran and Houthi attacks on Saudi tankers in the Red Sea choked key shipping routes Source: BBC; AP News.

Oil price surge

The price spike follows a breakdown of the US-Iran ceasefire and renewed Houthi strikes on Saudi oil tankers in the Red Sea, adding to the effective closure of the Strait of Hormuz Source: CNBC; Al Jazeera. Goldman Sachs warned Brent could exceed $120 a barrel if disruptions persist Source: Al Jazeera.

Impact on interest rates and consumers

Economists say sustained high oil prices could force central banks to raise interest rates. In the UK, City economists see a risk of Bank of England rate hikes if oil stays above $90-$100 Source: The Guardian. In Australia, markets see an even chance of a Reserve Bank rate hike as petrol prices approach $2 a litre Source: The Guardian. In the US, traders now price in a 36% chance of a Federal Reserve rate hike, and gasoline averages $4.11 a gallon Source: AP News.

Shipping disruptions

• Attacks on commercial ships in the Persian Gulf and Red Sea have killed at least 17 seafarers since March Source: CNBC.
• The Houthis declared a naval blockade on Saudi shipments, targeting two tankers Source: Al Jazeera.
• Iran's IRGC claims the Strait of Hormuz is "completely closed" Source: Al Jazeera.