Brent crude oil prices climbed above $105 a barrel on Thursday, extending a sharp rally driven by rising tensions between the United States and Iran and reviving concerns over inflation and global economic growth.
The international benchmark crossed the $100 mark for the first time since July on Wednesday before moving higher during Thursday’s trading session. Brent futures were trading at $105.37 a barrel at 9:00pm Dhaka time, according to Investing.com.
The move above $100 has become a key psychological threshold for financial markets as higher energy costs feed into businesses, consumers and inflation expectations.
“$100 a barrel is a psychological level that matters for markets,” Kathleen Brooks, research director at trading group XTB, told AFP, warning that higher oil prices could increase costs and weigh on economic growth.
The latest rise in crude prices has already spread across financial markets. US stocks ended lower on Wednesday, with the Dow Jones Industrial Average falling 0.8 per cent. European markets faced stronger pressure, with France’s CAC 40 index declining nearly 2 per cent.
The jump in oil prices also pushed up bond yields as investors demanded higher returns amid renewed inflation concerns. The yield on the 10-year US Treasury note rose to its highest level since 2023.
Markets are now closely watching US inflation data due on Friday, which could influence expectations over the Federal Reserve’s interest-rate decision next week. The European Central Bank was also expected to raise interest rates as policymakers respond to persistent price pressures.
Despite the immediate spike, the outlook from energy analysts remains more cautious. The US Energy Information Administration, in its September Short-Term Energy Outlook, forecast Brent crude would average around $90 a barrel in the second half of 2026, significantly below current market levels.
The widening gap between forecast prices and current trading levels highlights how geopolitical risks have pushed oil markets above previous expectations.
Patrick O’Hare, chief market analyst at Briefing.com, told AFP that the increase in oil prices “naturally translates to a bump in concerns about inflation and a possible rate hike.”
For governments and businesses, the latest oil surge adds a fresh challenge as higher energy costs threaten to slow growth and complicate efforts to bring inflation under control.
