Brent Crude Hits $92 as Iran War Disrupts Oil Shipments

Oil prices have continued to rise due to ongoing violence in Iran's war, which has disrupted traffic through the Strait of Hormuz. This key waterway accounts for about 20% of global oil shipments. Brent crude rose 1.7% to $92 a barrel on September 1, following a 2.7% gain on August 31.

The national average gas price in the US has been above $4 per gallon every day this month for the first time ever, according to AAA data. This surpasses even the high prices seen during the COVID-19 pandemic in 2022.

Higher energy costs have fueled already elevated inflation, which remains above the Federal Reserve's 2% target. Many experts expect a rate hike soon if inflation doesn't improve. The next report on prices comes out just before the Fed meeting and could influence their decision.