Brent crude tops $105 per barrel

The sudden spike in crude prices triggered a global market sell-off, knocking approximately 0.5 per cent off the S&P 500 index in the United States while pulling down major stock exchanges across Europe and Asia. Security risks along key maritime transit corridors and recent attacks on oil tankers have re-injected significant geopolitical risk into the global economy.

Prices cooled slightly after US President Donald Trump posted on social media indicating that the United States would not launch military strikes against Iran prior to the upcoming mid-term elections.

Simultaneously, fighting intensified between Yemen's Iran-backed Houthi rebels and the Saudi-led military coalition, raising security alarms in Riyadh.

Jorge León, Senior Vice-President at energy consultancy Rystad Energy, noted that while market fundamentals suggested oil prices should moderate, rapidly deteriorating conditions in the Red Sea region prevented any retreat.

León added that previous warnings from Trump regarding potential military options against Iran had introduced fresh volatility into energy markets. However, the US President's latest statements suggested Washington would hold off on immediate military action.