Global oil prices climbed above $100 a barrel on Thursday for the first time since May after Yemen’s Houthi movement claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, fueling concerns over global energy supplies.

The reported strikes came as hostilities between the United States and Iran continued to escalate, intensifying fears of a prolonged disruption to oil exports from the Middle East.

Brent crude, the international benchmark for oil prices, rose to $100.60 per barrel during Thursday trading, marking its highest level since May 26.

The latest rally represents an increase of roughly 29% over the past month, underscoring growing concerns about supply risks amid the expanding regional conflict.

The surge in energy prices rattled financial markets, sending major U.S. stock indexes sharply lower.

The Dow Jones Industrial Average fell 525 points, or about 1%, while the S&P 500 lost 1.2%.

The technology-heavy Nasdaq Composite posted the steepest decline, dropping 2.2% as investors reacted to mounting geopolitical uncertainty and the prospect of higher energy costs weighing on global economic growth.

Analysts said the combination of attacks on commercial shipping and continued military exchanges in the Middle East has heightened concerns over the security of critical oil transport routes, particularly around the Red Sea and the Strait of Hormuz.

The renewed volatility in energy markets comes as investors closely monitor developments in the region, with fears that any further escalation could place additional pressure on global fuel supplies and inflation.