Oil prices are jumping again Thursday as increased fighting in the Middle East threatens to slow the global flow of crude.
The price for a barrel of Brent crude oil, the international standard, climbed 6.1% to $99.78.
Earlier in the morning, it briefly topped $100 and touched its highest price in two months following attacks on two Saudi oil tankers in the Red Sea. The attacks threaten another avenue that oil companies use to transport their crude from the Middle East to customers worldwide, along with the Strait of Hormuz.
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Underscoring the importance of the sea route for the economy, U.S. President Donald Trump threatened “major military punishment” against the Houthi rebels in Yemen, who are backed by Iran, if they keep attacking ships.
It was just a few weeks ago that the price for a barrel of Brent had dropped below $72, roughly back to where it was before the United States and Iran attacked Iran to begin their war, on hopes that the Strait of Hormuz would fully reopen to oil tankers.
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The jumps in oil prices are threatening to reaccelerate inflation. That in turn could push the Federal Reserve and other central banks to raise interest rates, which would slow economies and undercut prices for stocks and other investments.
The yield on the 10-year Treasury rose to 4.70% from 4.67% late Wednesday and from just 3.97% before the war with Iran began. That’s a significant increase, and it’s already helped bring long-term U.S. mortgage rates to their highest levels in nearly a year.
