Oil surges past $100 on Middle East tensions, stoking inflation concerns

Brent crude oil climbed sharply on Monday, breaching the $100 per barrel mark amid escalating Middle East tensions. The international benchmark jumped more than 2 per cent to reach US$100.19 a barrel before retreating slightly to US$99.90, reflecting investor concerns over potential supply disruptions in one of the world's most critical energy regions.

The price movement signals renewed anxiety among oil traders about geopolitical risks affecting global energy markets. Any sustained disruption to Middle Eastern oil exports could have significant ramifications for energy costs across South and Southeast Asia, where demand remains robust and many economies rely heavily on imported petroleum.

Higher crude prices typically feed through to increased fuel costs for consumers and businesses, potentially exacerbating inflationary pressures that central banks across the region have been working to contain. Singapore, a major energy trading hub and net importer of oil, faces particular exposure to crude price volatility.

Market analysts are monitoring the situation closely, with investors weighing the balance between geopolitical risks and broader economic headwinds that could dampen oil demand. The volatility underscores the vulnerability of energy markets to regional conflicts and the ongoing challenge for policymakers to manage inflation expectations.