Global oil prices climbed sharply on Thursday after fresh attacks in the Red Sea raised concerns about energy supplies. Brent crude rose more than six per cent to reach US$100 a barrel, its highest level in months.

The increase followed attacks by Iran-backed Houthi rebels on ships in the Red Sea. At the same time, US President Donald Trump warned of possible military action against the group. Iran also said it would continue striking targets in the Gulf region while US attacks continue.

The growing conflict has raised concerns about two of the world’s most important oil shipping routes. The Red Sea and the Strait of Hormuz handle large volumes of global energy exports. Analysts say disruptions along either route could reduce oil supplies and keep prices high.

Saudi Arabia has already been using the Red Sea to export millions of barrels of oil that would normally pass through the Strait of Hormuz. Any further disruption could tighten global supplies and place additional pressure on energy markets.

Higher oil prices also increase the risk of rising inflation. As a result, investors are worried that central banks may keep interest rates higher for longer. Although the European Central Bank left rates unchanged on Thursday, its president, Christine Lagarde, said some policymakers had discussed a rate increase before deciding to hold.

Financial markets reacted to the uncertainty. Wall Street’s major stock indexes fell as investors weighed the impact of higher oil prices and ongoing geopolitical tensions. Technology shares also came under pressure after disappointing earnings reports from Alphabet and Tesla. Investors remain cautious about heavy spending on artificial intelligence and are watching for earnings from Microsoft, Meta and Amazon next week.

Analysts say markets will remain focused on developments in the Middle East. Any further disruption to key shipping routes could push oil prices even higher and increase pressure on the global economy.