Oil surges to $100 per barrel after Red Sea attacks

Key Points:

• Oil prices surged to their highest levels in nearly two months, with Brent crude rising over 7.5% to above $101 per barrel and U.S. crude increasing more than 6.5% to nearly $93 per barrel, driven by escalating tensions in the Iran conflict.
• Tehran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea and announced a naval blockade on Saudi Arabia, expanding the conflict beyond the Strait of Hormuz and threatening significant disruptions to global energy supplies.
• The Bab el-Mandeb strait, a critical chokepoint for 12-15% of global maritime trade, has become a new flashpoint, raising concerns about the security of oil shipments and contributing to rising inflation fears.
• Gas prices in the U.S. also climbed, with the national average reaching $4.09 per gallon, undermining earlier gains following a now-collapsed U.S.-Iran memorandum of understanding.
• The conflict and rising oil prices have increased inflation concerns, pushing U.S. bond yields and mortgage rates to multi-month highs and negatively impacting stock markets, particularly tech stocks.