#BrentReturnsTo100

Brent crude oil prices have gone up a lot. Are now over $100 for the first time in two months. They ended the day at $100.69 after going up by than 7%. The other kind of oil called WTI also went up a lot by 6.2% to $92.19. This happened because of some security concerns in the Middle East that could affect the routes that oil ships take.

What made the oil prices go up fast?

Well some rebels called Houthi attacked two oil tankers in the Red Sea. Saudi Arabia said that one of the tankers caught fire. These attacks have made it harder for oil to be shipped through two important waterways:

* The Strait of Hormuz which is almost blocked

* The Bab el-Mandeb Strait, which is also in danger

These waterways are very important for getting oil to parts of the world. Because of this the price of Brent oil has already gone up to over $105 per barrel. This shows that people are worried about getting oil now.

Some politicians are saying some things.

President Trump said that Iran will be in trouble if the Houthi attacks keep happening. He also said that the United States might attack some targets. This kind of talk is making it more likely that there will be a fight and it is making the markets more uncertain.

Some experts think that Brent crude oil prices could go up to $120 per barrel this year if the problems in the Strait of Hormuz do not get better. This shows that there could be a problem with getting oil if things do not calm down.

The higher oil prices are already affecting parts of the financial markets.

* People are worried about inflation again so the interest rate on 10-year Treasury bonds has gone up to over 4.7%.

* The Nasdaq stock market went down by 2.3% because higher energy costs are bad for some companies.

* Some people think that the Federal Reserve might raise interest rates soon and that is making the markets a little nervous.

So what does all this mean?

The fact that Brent crude oil prices are over $100 again shows how much global energy markets can be affected by what happens in the Middle East. When there are problems in the Strait of Hormuz and the Bab el-Mandeb Strait at the time the price of oil can go up very quickly.

People who trade or invest in oil should pay attention to what is happening because if things get worse oil prices might go up even more.. If things get better the prices might go back down. We also need to keep an eye on inflation and what the central banks might do.

This is a reminder that what happens in the world of politics can have a big impact, on the financial markets.

‍#BrentOil #OilPrices #Geopolitics @Gate_Square