Brent Crude Price Dropped Amid US Interest Rate Hike

The price of Brent crude has declined by $3.62/bbl to trade at $104.28/bbl following a decision by the US Federal Open Market Committee (FOMC) to increase its key interest rate.

This is the first hike since 2023, with the new range set at 3.75-4%.

Higher interest rates in the US can dampen demand growth and make dollar-denominated commodities like oil more expensive for holders of other currencies.

Brent crude's price has continued to trade above $100/bbl amid the worsening situation in the Middle East, with Iran's foreign minister Abbas Araghchi stating that 'today's decisions will decide future strategic balance in the region, with immeasurable knock-on effects.'