Brent crude, the international oil benchmark, rose as much as 2.5 per cent to just over $97 before retreating to trade 0.4 per cent higher at $95 in London, The Financial Times reported.
The price of natural gas trading at the European TTF hub in the Netherlands broke above €75/MWh for the first time since the start of the war in February, reaching its highest level since early 2023.
The advances followed a wave of strikes by the US against Iran on Tuesday, its second round in recent days, which deepened investors’ fears over the spectre of further escalation between the foes after a month of relative calm in August.
“The perception that this (conflict) is all going to be over by Christmas is fading fast,” said Mike Bell, head of market strategy at RBC BlueBay Asset Management. “That’s driving the market.”
Washington and Tehran are vying for control of the Strait of Hormuz, a key waterway for oil supplies.
The rise in oil and gas prices continued to rattle global bond and stock markets, reigniting concerns the global economy would face a period of prolonged inflation.
The yield on the 10-year US Treasury rose to 4.81 per cent on Wednesday morning, taking it to the highest level since 2023.
The 10-year German Bund yield was up 0.04 percentage points in early trading to 3.37 per cent, keeping the country’s borrowing costs at their highest level since 2011.
MNA
