Crude Oil Surges Above $100 as PPI Data Fuels Rate Hike Fears

U.S. crude oil prices have broken back above $100 per barrel for the first time since May, as market anxiety over a prolonged Iran war continues to simmer.

This development comes on the heels of other economic indicators pointing towards rising inflation pressures, including the latest producer price index (PPI) report from the U.S. Bureau of Labor Statistics.

The PPI for final demand rose 0.4% in August, seasonally adjusted, with core prices increasing by 0.3%. On an annual basis, the PPI has risen 5.4%, exceeding the Federal Reserve's 2% inflation target and reinforcing market expectations of a potential interest rate hike.

Wholesale prices also rose 0.4% in August, in line with forecasts, while core PPI excluding food and energy accelerated by 0.2%. These data points will likely be closely watched as the Fed approaches its upcoming decision on interest rates.