Oil prices rose sharply on Thursday, with Brent crude up 5% to $105.3 a barrel, as escalating Middle East tensions and a US hurricane threat spooked investors and set off selling across global bond and stock markets.
Key facts
- Brent crude rose 5% to $105.3 a barrel on Thursday, according to the Guardian.
- Earlier in the day Brent was up 3.8% at $104 a barrel.
- The rise was driven by fears of escalating Middle East tensions and a potential hurricane off the US coast.
- The jump triggered a wave of selling in global bond and stock markets.
- A global bond market sell-off continued amid another wave of potential strikes against Iran.
Oil prices rose sharply on Thursday as fears about escalating tensions in the Middle East combined with the threat of a hurricane off the US coast, according to the Guardian. Brent crude, the international benchmark, climbed 5% to $105.3 a barrel.
The gains accelerated over the course of the morning. Earlier in the day, Brent had risen 3.8% to $104 a barrel before extending its advance, the Guardian reported.
The surge was linked to concerns over a potential squeeze on production. The Guardian pointed to a hurricane threatening the US coast as one factor weighing on supply expectations, alongside geopolitical risks in the Middle East.
Those geopolitical risks centred on the prospect of another wave of potential strikes against Iran, which added to market jitters, according to the Guardian.
The rise in oil prices triggered a wave of selling across global markets. Bond markets continued a sell-off while stocks fell, the Guardian reported, reflecting investor unease over the combined threats to energy supplies and wider stability.
The developments were being tracked through the Guardian’s business live coverage as events unfolded on Thursday.
Why it matters
Oil is a key input across the global economy, so sharp price moves can feed through to fuel costs, inflation and business expenses. A simultaneous sell-off in bonds and stocks signals broad investor anxiety, which can affect borrowing costs, pensions and savings for ordinary people.
Frequently asked questions
How much did oil prices rise?
Brent crude rose 5% to $105.3 a barrel on Thursday, after earlier gaining 3.8% to $104 a barrel, according to the Guardian.
What caused the jump in oil prices?
The Guardian attributed the rise to fears about escalating Middle East tensions, including the prospect of another wave of potential strikes against Iran, and a squeeze on production from the threat of a hurricane off the US coast.
How did the oil price rise affect other markets?
According to the Guardian, the increase triggered a wave of selling in the global bond and stock markets, with the bond sell-off continuing and stocks falling.