- Oil prices surged to 100 US dollars a barrel for the first time in two months on Thursday, following fresh attacks in the Red Sea that threaten to escalate the Middle East conflict.
- The price rise occurred after US President Donald Trump warned he would hold Iran directly responsible for further attacks by Houthi rebels on ships in the Red Sea, accusing them of shooting at two Saudi Arabian vessels.
- The President threatened a “major military punishment” against Iran and the Houthis if the attacks persist, while the Houthis had previously announced plans for a naval blockade on Saudi Arabia.
- Brent crude specifically surged by 6.9 per cent to 100.6 US dollars a barrel, with economists from Oxford Economics forecasting oil prices will be above 85 dollars per barrel through the rest of the year.
- In London, equities dipped amid concerns over rising oil prices, with the FTSE 100 index falling by 0.96 per cent, though shares in oil majors Shell and BP saw gains.
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