Brent crude prices climbed to $100 a barrel on Wednesday for the first time since July as escalating military tensions across the Middle East intensified concerns over disruptions to oil supplies from the region.

The latest escalation followed U.S. strikes on Iranian oil tankers near Kharg Island, a critical hub for Iran’s crude exports, raising concerns that further attacks could disrupt flows through the region and particularly the strategically important Strait of Hormuz.

Brent crude has gained about 25% since early August as hopes for a permanent resolution to the six-month-old conflict have faded and fighting has intensified. The global benchmark is now up more than 60% this year, reflecting the growing risk premium in energy markets.

The conflict widened further on Tuesday after Iranian-backed Houthis in Yemen launched strikes on several Saudi cities, drawing another major U.S. ally into the escalating hostilities. U.S. forces subsequently struck multiple Iranian oil tankers, while Iran targeted a U.S. base in Jordan and carried out attacks on ships.

The renewed military escalation has strengthened bullish sentiment in crude markets. Priyanka Sachdeva, head of market insights at Phillip Nova, said momentum was building as Brent approached the psychologically important $100-per-barrel level.

The rise in oil prices is also creating broader concerns for the global economy. Renewed attacks on energy infrastructure could keep crude prices elevated, increasing inflationary pressure and complicating expectations for interest-rate policy. Investors are closely watching whether the latest escalation leads to a sustained disruption in oil supplies.

The upcoming U.S. consumer price index data on Friday is expected to provide an important test for market expectations ahead of the Federal Reserve’s September 15-16 meeting. A sustained increase in energy prices could make the inflation outlook more challenging and influence expectations for the pace of monetary easing or tightening.

OCBC analysts said attacks on Saudi energy facilities and the destruction of five Iranian tankers had raised concerns about another prolonged disruption to oil supplies.

Higher crude prices could have a particularly significant impact on Asian economies, many of which remain heavily dependent on imported energy. Rising energy costs could increase inflationary pressures, weaken household purchasing power and raise input costs for businesses.

The move above $100 a barrel therefore represents more than a psychological threshold for crude markets. Market participants are increasingly viewing the level as a potential warning signal for inflation, interest rates and broader economic growth if supply disruptions persist.