The price of oil has once again exceeded the $100 per barrel threshold, for the first time in almost two months, amid escalating conflict in the Middle East and fears that global oil supply could be affected.
The Brent crude oil price, the international benchmark, has risen from around $95 to over $100 per barrel, following intensified attacks by Houthi rebels in Yemen on Saudi oil tankers in the Red Sea. Investors fear that oil shipments could be disrupted both through the Red Sea and the Strait of Hormuz, two of the most important maritime routes for global energy trade.
According to The Guardian, the return of oil above the psychological threshold of $100 amplifies the risk of a new global inflation surge and puts pressure on economies already affected by geopolitical tensions.
Analysts warn that if the situation in the region continues to deteriorate, the price of oil could rise to $120 per barrel.
Stock markets reacted negatively
The escalation of the conflict has caused declines in major stock markets. In the United States, the Nasdaq index has lost over 2%, and Tesla shares have depreciated by approximately 12%, due to financial results below expectations and investor nervousness.
At the same time, government bond yields have increased in the US, Germany, Japan, and the UK, a sign that investors anticipate higher inflationary pressures and higher financing costs.
IEA warns of risks
The International Energy Agency (IEA) warns that the worsening conflict in the Middle East could have serious consequences for the global energy market. According to the institution, the risk of escalation of conflicts in the region remains high, which could amplify pressures on oil supply.
Although the oil market has remained relatively stable in recent months, the escalation of the conflict in the Middle East has brought back fears of disruptions in oil supply and their effects on the global economy.
G.P.