Global markets face volatility as Brent crude approaches $100 per barrel following attacks on Saudi energy facilities and UK mortgage rates reach multi-month highs.

Brent crude oil prices have climbed above $99 per barrel this week, nearing the $100 mark, following reports that Yemen’s Iran-aligned Houthis attacked energy facilities in Saudi Arabia. The strikes, which wounded over 70 people, have forced the suspension of operations at several sites. Simultaneously, UK mortgage rates have reached their highest levels in months, and European gas prices remain at their peak since January 2023.

Energy Market Disruptions

The rise in oil prices is driven by ongoing regional conflict and concerns over the security of energy infrastructure. Operations at Saudi energy facilities near the Yemeni border were halted following the attacks. Meanwhile, shipping traffic through the Strait of Hormuz has slowed significantly, with only seven commodity vessels recorded on Monday compared to a daily average of 130 before the conflict began.

UK Mortgage and Economic Pressures

UK mortgage borrowers are facing increased costs due to bond market turbulence. The average two-year fixed residential mortgage rate reached 5.65%, its highest level since June 7, while the average five-year rate hit 5.70%, the highest since May 10. Lenders have also reduced the number of available mortgage products to 7,417.

Corporate and Global Economic Updates

Novartis shares fell 10% after its experimental drug del-desiran failed to show significant improvement in a late-stage study for myotonic dystrophy type 1. Additionally, South Africa’s economy contracted by 0.2% in the second quarter, ending six consecutive quarters of growth. In commodity markets, copper reached a record high of $14,617 per ton on the London Metal Exchange.