Crude Prices Soar Amid US-Iran Tensions and Hawkish Fed Comments

US-Iran tensions flared up again on Monday, causing crude prices to surge over two percent. The attack by the US on Iranian rocket launchers in the Strait of Hormuz led Tehran to retaliate by firing at Jordan.

The spike in oil prices comes as the Iran war has been ongoing for six months, and despite efforts to de-escalate tensions, hostilities have continued.

Federal Reserve boss Kevin Warsh's hawkish comments also contributed to the increase in crude prices. In a speech at the Jackson Hole symposium of central bankers and economists, he stated that the Fed would need to be confident that underlying inflation is moving towards its target before considering rate hikes.

Warsh described the current inflation rate of 3.7 percent as 'concerning' and said he would be 'hard-pressed' to describe financial conditions as 'restrictive', hinting at potential rate hikes in the future.