Oil Prices Jump Past $100 a Barrel
Oil prices rose above $100 a barrel on Thursday. This is the first time since May.
Brent crude oil rose more than 6% that day. It had been $95 a barrel on Wednesday.
The jump reflects growing conflict in the Middle East. Traders also fear future oil supply problems.
Iran-backed Houthi fighters attacked two Saudi oil ships. The attacks happened in the Red Sea.
The Houthi group had announced a blockade of Saudi ports. President Trump warned the US might launch a large attack on Iran.
Reports say the US has struck Iran for 12 nights in a row. US stock markets fell as oil prices rose.
Fears of wider regional conflict drove the market swings. Reports say US gas prices reached $4.09 a gallon.
Financial company Goldman Sachs predicts Brent could hit $120 a barrel by late this year. That would happen if supply problems continue.
Key Terms 3
- Brent crude A major type of oil used to set world oil prices
- Houthi An armed group in Yemen backed by Iran
- barrel A standard unit used to measure and price oil