Oil prices near $100 as Middle East tensions fuel market volatility

Brent crude rose to between $96 and $98 per barrel, edging toward the $100 mark, as renewed fighting in the Middle East disrupted supply routes. Houthi rebels in Yemen claimed attacks on two Saudi tankers in the Red Sea, while the United States launched its twelfth nightly airstrike on Iranian targets, prompting concerns over the Bab al‑Mandab strait – a key oil conduit often called the “Gate of Tears”. Analysts warned that continued assaults could push Brent past $100 per barrel.

European equity markets responded with declines: Germany’s DAX fell 0.9%, France’s CAC 40 dropped 0.96%, and Britain’s FTSE slipped 0.18% as investors awaited the European Central Bank’s interest‑rate decision later in the day. The euro traded around $1.14 against the dollar, and August gas futures on the Dutch TTF were priced at €62.88/MWh. The heightened geopolitical risk and rising energy prices are expected to pressure inflation and monetary‑policy outlooks across the region.