Global oil prices hit $100 a barrel amid attacks in Red Sea

Key Points:

• Global oil prices surged above $100 a barrel due to escalating conflict in the Middle East, with Brent crude reaching $100.64 and West Texas Intermediate hitting $91.83.
• Iran-backed Houthi rebels targeted Saudi oil tankers in the Red Sea, threatening the Bab el-Mandeb Strait, a critical passage for about 7% of the world's oil supply.
• Rising oil prices have pushed U.S. gas prices to a national average of $4.09 per gallon, up from $3.94 a week earlier, contributing to inflation concerns.
• The surge in oil prices complicates the Federal Reserve's upcoming interest rate decision, increasing the likelihood of a rate hike to combat inflation, with market odds rising from 11% to 36%.
• Financial markets reacted negatively, with major U.S. stock indexes falling around 1-1.8%, while Treasury yields rose amid heightened geopolitical tensions and economic uncertainty.