Oil prices climbed past 100 US dollars a barrel on Thursday for the first time in two months, driven by new attacks on ships in the Red Sea and heightened geopolitical tension in the region.
Brent crude rose 6.9 percent to reach 100.60 US dollars a barrel. The increase followed a statement from US President Donald Trump, who accused Houthi rebels of targeting two Saudi Arabian vessels and warned that he would hold Iran directly responsible for future incidents.
“Major military punishment” would follow if the strikes on maritime shipping continue, Trump said. The statement comes after the Houthis announced plans to implement a naval blockade against Saudi Arabia.
Market analysts at Oxford Economics now forecast that oil prices will stay above 85 dollars per barrel for the remainder of the year.
The spike in crude prices affected financial markets in London, where the FTSE 100 index dropped 0.96 percent due to broader concerns over rising energy costs. Shares of major oil producers BP and Shell rose despite the wider market decline.
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