Oil prices jumped sharply on Thursday, with Brent crude climbing about 5% to $105.30 a barrel as renewed concerns over supply disruptions in the Middle East coincided with the threat of a hurricane hitting major US oil-producing areas.
The latest rise followed a series of attacks on shipping around the Gulf and Strait of Hormuz, a critical route for global energy supplies. A tanker off Qatar was hit by multiple projectiles, adding to concerns that continued attacks could disrupt the movement of crude and fuel through the region.
In the United States, Hurricane Isaias has also raised supply concerns after energy companies began shutting down offshore production and evacuating workers from Gulf of Mexico platforms. More than 25% of current US Gulf oil production had been shut in as of Wednesday, according to government data.
The combination of geopolitical tensions and weather-related production cuts has pushed crude prices back above $100 a barrel, reviving concerns about inflation and higher energy costs.
The surge is already affecting financial markets, with government bond yields rising and global shares falling as investors assess the possibility that prolonged high oil prices could put renewed pressure on inflation and interest rates.
Leave a comment