Oil passes $100 a barrel again and shares slide as Middle East conflict escalates

The oil price broke above $100 a barrel for the first time in two months as a fresh escalation of the Middle East conflict threatens to compound disruption to global oil supplies. The disruption to two critical oil trade arteries has reignited fears that oil could climb to highs of $120 a barrel in a blow to households and the global economy after years of energy cost inflation. The Houthi militias launched the attacks, which have left one vessel ablaze, after accusing the crews of violating a naval blockade imposed by the group in the Red Sea. The oil price peaked at $126 a barrel in April during the conflict, but fell back below $100 in late May and then to lows of $71 at the start of July amid hopes of a ceasefire.