Oil prices jump to five-month high as attacks threaten global supply

AI desk brief

Oil jumped 3% to $112/bbl, a five-month high, after attacks in Saudi Arabia and tanker incidents in the Strait of Hormuz renewed fears of supply disruption. The move is feeding expectations for higher inflation and borrowing costs, which is lifting global risk aversion and can support precious metals as a hedge if the shock persists.

The article also notes that Persian Gulf exports are above prewar levels despite the tensions, tempering the immediate supply shock narrative, but markets reacted sharply with European and Asian equities lower on the day.