Global Oil Prices Soar Amid Ongoing Conflicts
Oil prices have reached new highs as diesel fuel prices surge to their highest level this year. The international oil benchmark Brent surpassed $97 per barrel Thursday morning, but ended the day nearly unchanged at $95.52.
The price of Brent is up 20% since August 4. Diesel prices are also under pressure due to various factors, including the ongoing war in Iran and the conflict in Ukraine. The Strait of Hormuz, a critical passageway for oil exports, has seen reduced traffic following recent attacks on ships.
Analysts estimate that Persian Gulf oil exports have recovered to 50% of pre-war levels, but this figure has brought little comfort to energy markets. Wholesale gas prices were up 1% in early trading Thursday, and natural gas prices also rose.
Federal Reserve Governor Christopher Waller expressed confidence that consumer and wholesale inflation readings will remain 'reasonable' in the weeks ahead. However, he noted that high energy prices could bleed into other goods and prices if inflation data for August comes in hot.