$101 Oil: Global Markets Plunge Amid US-Iran Conflict
The global markets experienced a downturn on Thursday, following a decline in Wall Street shares. The price of crude oil surged above $100 a barrel for the first time since July, with Brent crude jumping 3.4% to around $101 a barrel.
The Strait of Hormuz, through which a fifth of the world's oil supply passes, has seen its traffic shut down due to ongoing attacks between the US and Iran. This has led to higher fuel costs in the US, with gasoline prices increasing by 32% over the past year to $4.22 per gallon.
The conflict is also affecting household budgets indirectly, as higher shipping costs contribute to rising prices for goods. The Producer Price Index for August will be released later on Thursday, followed by the Consumer Price Index on Friday, which is expected to show inflation above 3%.