By Ekene Orefo, Canada
Oil prices hit $100 as Middle East crisis rattles global markets
Global oil prices have climbed back to $100 per barrel, reaching their highest level since July as escalating tensions in the Middle East raise fears of supply disruptions.
Brent crude, the global benchmark, jumped 2.3 per cent on Wednesday to briefly touch the $100 mark before slightly retreating.
US crude also gained momentum, rising 1.3 per cent to trade around $94 per barrel.
The surge followed fresh military developments in the Middle East, increasing concerns over the safety of oil shipments through the strategic Strait of Hormuz, a major route for global energy supplies.
Oil markets have remained unstable this year as traders react to rising conflicts, attacks on energy infrastructure and uncertainty around crude supply.
Both Brent and US crude have gained more than 60 per cent this year, pushing up the cost of petrol, diesel and other petroleum products worldwide.
The latest increase was driven by renewed tensions between the United States and Iran, with fears that the conflict could spread across the region and disrupt oil production.
US Central Command said American forces carried out strikes on Iranian vessels in response to attempted missile attacks on a US Navy warship.
The situation worsened after Iran-backed Houthi rebels attacked Saudi Arabian infrastructure, raising concerns that the crisis could further threaten global oil supplies.
Energy analysts warn that prolonged instability in the Middle East could keep prices high, increasing inflationary pressures and putting more strain on consumers worldwide.
