Brent crude jumps above $107 amid tensions

ISLAMABAD: A sudden surge in global oil prices has raised fresh concerns about inflation and economic stability, putting additional pressure on stock markets and complicating policy decisions for central banks in the United States, Europe and Asia.

According to market data, Brent crude rose by $4.67, or 4.53%, to $107.75 per barrel. West Texas Intermediate (WTI) also climbed 4.47% to $96.28 per barrel.

WTI Midland increased by 4.78% to $97.98 per barrel, while Murban crude gained 3.53% to reach $117.07 per barrel.

The sharp increase in crude prices came amid renewed geopolitical tensions in the Middle East, raising concerns that a prolonged escalation could further disrupt energy supplies and push global inflation higher.

The latest developments followed reports that a Saudi-led coalition had intercepted six ballistic missiles launched by Iran-aligned Houthi forces in Yemen. The missiles were reportedly aimed at the Saudi cities of Taif and Yanbu.

Coalition spokesman Brigadier General Turki Al-Malki said the attacks would receive a firm response, adding to concerns over a possible escalation in the region.

Higher oil prices could increase costs for transportation, manufacturing and other energy-intensive sectors, potentially adding to inflationary pressures in economies that rely heavily on imported crude.

The rise in energy prices is also creating a difficult environment for central banks. Policymakers may face greater pressure to balance inflation-control measures with concerns about economic growth if higher fuel costs begin affecting businesses and consumers.

Financial markets have already come under pressure from uncertainty surrounding the Middle East situation. Investors are closely monitoring developments in the region and their potential impact on global oil supplies, inflation and interest-rate policies.