Oil prices have climbed back above $100 per barrel, a level not seen since May, as ongoing conflict in the Red Sea disrupts shipping through a key waterway. Brent crude, the international benchmark, was trading around $100.60 per barrel on Thursday morning, according to market data.
The surge comes after attacks in the Red Sea region have reduced traffic through the Bab el-Mandeb strait, a critical passage for oil tankers. The strait connects the Red Sea to the Gulf of Aden and is a major route for global oil shipments. Reduced traffic has raised concerns about supply disruptions, pushing prices higher.
The impact of the price increase varies across regions. While oil-exporting countries may benefit from higher revenues, importing nations face increased costs for fuel and other goods. Analysts are watching the situation closely, as further escalation could lead to sustained higher prices.
The Red Sea has seen increased tensions in recent weeks, with attacks targeting vessels. The conflict has led to rerouting of ships and higher insurance costs for shippers. Oil prices had fallen from earlier highs but have rebounded sharply amid the uncertainty.
Market observers note that the $100 level is psychologically significant and could affect consumer prices and inflation expectations. However, the long-term trend will depend on the duration of the disruption and global oil supply responses.