Skip to content

Oil Back Above 100 Dollars: Every Shot in the Red Sea Sends a Wave That Reaches Every Pump

1 min read
Share
Oil Back Above 100 Dollars: Every Shot in the Red Sea Sends a Wave That Reaches Every Pump

The price of Brent crude has crossed the 100-dollar-a-barrel line again for the first time since late May. The jump is no accident - it comes straight from the Red Sea, where every shot sends a wave that reaches every petrol pump in the world.

North Sea Brent jumped 6.77 percent, to 100.512 dollars a barrel. The cause? The Houthis, backed by Iran, are once more striking ships in the Red Sea. That means costlier insurance for the tankers carrying oil and gas, and longer routes - because ships are avoiding the conflict zones. Every kilometre of detour is a cost that someone pays in the end.

The numbers analysts cite are stark: Brent is still about 20 dollars below its April peaks, but already 28 dollars above the level before the new escalation in the Middle East. US crude (WTI) is trading around 84.50 dollars. The market, in other words, smells crisis again.

And why does this matter beyond the stock exchange? Because more expensive oil doesn't stay on the chart. It turns into higher inflation, and central banks then get an excuse to hold or raise interest rates. Costlier credit, costlier transport, costlier every box that travels by truck or ship.

The Balkans know this story by heart - tension at one end of the world, a price rise at the other. Will this time be different? When the big players quarrel in the Red Sea, it rarely happens that the flame stops right at the border of the conflict.

For now, analysts describe the current jump as a “serious geopolitical and economic threat”. Translated into a language we all understand: while the tension lasts, no one promises it will be cheaper tomorrow.