Brent Crude Tops $100 as Middle East Fighting Intensifies, Dragging European Stocks Lower

Brent crude rose above $100 a barrel in the September 9 session as the conflict in the Middle East intensified, according to wire reports. European shares dipped in response, with investors citing the oil move and its implications for inflation as the immediate trigger. The timing matters because the European Central Bank is widely expected to raise rates on Thursday. A sustained run above $100 for Brent complicates that picture: energy costs feed directly into headline inflation, and bond markets have already been selling off as investors debate how high the ECB's terminal rate will need to go this cycle. Euro bond yields extended their recent slide even before the rate decision itself. What remains unresolved is how long the Middle East disruption lasts and whether it forces the ECB to signal a longer tightening path than markets currently expect. Wall Street is described as bracing for what comes after Thursday's hike, not just the hike itself.