Oil Prices Hit $100 Amid Houthi Attacks on Tankers

Oil prices surged to $100 a barrel on October 5, 2023, marking the first time since May, following attacks by Iranian-backed Houthi militants on two Saudi Arabian tankers in the Red Sea. This escalation threatens to squeeze global oil supplies and reignite inflation concerns.

Brent crude, Nigeria's benchmark, rose over 6 percent amid fears of renewed conflict between the US and Iran. The Houthis' actions, which included imposing a maritime blockade on Saudi Arabia, raised the possibility of closing the Bab al-Mandab Strait, a crucial route for Saudi oil exports.

The attacks come after a breakdown of a four-year ceasefire between the Houthis and Saudi Arabia, with US President Donald Trump warning of "major military punishment" if the assaults continue. The situation risks increasing inflation in many countries, including Nigeria, as rising oil prices typically lead to higher transportation and food costs.