The return of $100 oil is sending shockwaves through the global economy.

Brent crude climbed above the symbolic threshold this week for the first time in months after renewed attacks on oil tankers in the Red Sea intensified fears of major disruptions to global energy supplies. The rally has reignited concerns over inflation, higher interest rates and slowing economic growth worldwide.

For governments, businesses and consumers alike, the implications extend far beyond the price displayed at gas stations.

Why Oil Is Rising

Markets reacted after Yemen's Houthi movement claimed attacks on Saudi oil tankers, adding a second critical shipping bottleneck alongside the already disrupted Strait of Hormuz.

Together, these routes normally handle a significant share of global oil exports, making any disruption immediately reflected in international crude prices.

Brent crude briefly exceeded $100 per barrel, while U.S. West Texas Intermediate climbed above $90, marking one of the strongest weekly rallies of the year.

Inflation Could Return

Higher oil prices affect virtually every sector of the global economy.

Transportation becomes more expensive.

Manufacturing costs increase.

Food prices rise as logistics become more costly.

Airlines face higher jet fuel bills.

Shipping companies introduce fuel surcharges.

Retailers pass increased transportation expenses on to consumers.

Economists warn that this combination could reverse recent progress in reducing inflation, forcing central banks—including the U.S. Federal Reserve and the European Central Bank—to keep interest rates higher for longer.

The Threat of Stagflation

Perhaps the greatest concern is the return of stagflation—the difficult combination of weak economic growth and persistent inflation.

Reuters reports that financial markets are once again discussing this scenario as energy costs climb while governments simultaneously face the inflationary effects of new U.S. tariffs on imports from dozens of countries.

If both trends continue, consumers could face rising prices while businesses slow investment and hiring.

Winners and Losers

Energy companies stand to benefit from stronger crude prices, with shares of major oil producers rising alongside the commodity.

However, airlines, transportation firms, manufacturers and energy-importing countries face mounting pressure.

For households, the consequences are already visible through higher gasoline prices, more expensive groceries, increased freight costs and potentially higher prices for back-to-school products and other consumer goods.

What Comes Next?

Markets will now closely monitor developments in the Middle East.

Any additional disruption affecting the Red Sea or the Strait of Hormuz could push prices even higher, while a diplomatic breakthrough could quickly reverse some of the recent gains.

For now, the combination of geopolitical instability, renewed trade tensions and expensive energy is creating one of the most challenging environments for the global economy since the inflation surge of the early 2020s.

Whether oil remains above $100 may determine not only the direction of energy markets—but also inflation, interest rates and global economic growth during the remainder of 2026.