Global oil prices climbed above $111 a barrel on Thursday as renewed Houthi attacks in Saudi Arabia heightened concerns over an escalation of the Middle East conflict and further disruption to energy supplies.
Brent crude, the international oil benchmark, rose 2.5% to $111.58 a barrel, extending recent gains as investors assessed the risk of additional attacks on energy infrastructure and regional supply routes.
The latest developments have increased uncertainty across global oil markets, which are already facing pressure from the ongoing conflict involving Iran and disruption to shipping through the strategically important Strait of Hormuz.
Higher oil prices are raising fresh concerns about inflation, with increasing energy costs threatening to push up petrol, diesel, transport and manufacturing expenses.
The renewed price surge comes as central banks assess whether persistent inflation will require further interest rate increases, potentially placing additional pressure on households and businesses.
Government bond markets are also sensitive to rising energy costs, as expectations of prolonged inflation can push yields higher and reduce the value of existing bonds.
For the UK, the increase adds to concerns following September’s stronger-than-expected inflation figures, with higher fuel prices already contributing significantly to rising consumer costs.
The immediate outlook for oil prices remains closely linked to developments in the Middle East, particularly the risk of further attacks on energy infrastructure and disruption to major international shipping routes.
Investors will be watching whether Brent crude can sustain its move above $111 a barrel, as continued gains could reinforce inflation concerns and complicate interest rate decisions across major economies.
