Brent Oil Price Surges Amid US-Iran Tensions
The Brent crude futures contract has seen a significant increase of 2.76% to $90.47 per barrel due to renewed tensions between the US and Iran in the Middle East.
The recent strikes by the US on Iran's Larak Island and Tehran's response with missiles launched at two US air bases in Jordan have heightened concerns over energy supply disruptions and rising inflationary pressures worldwide.
According to Reuters, US President stated that Washington would 'hit Iran very hard' following these reciprocal attacks, indicating a continued escalation of the conflict.
The market-implied probability of an interest rate hike by the Federal Reserve at its September meeting has risen to 65.4%, with the 10-year US Treasury yield advancing by 2.5 basis points to 4.75%, its highest level since January 2025.