Iran Conflict Sends Oil Prices Soaring Amid Global Market Uncertainty

Oil prices have surged to $92.35 per barrel as Brent crude gained 2% after a month of escalating violence in Iran. The conflict has resulted in curtailed traffic in the Strait of Hormuz, which accounts for around 20% of global oil shipments.

The US had attacked rocket launchers on an Iranian island on Sunday, claiming they were preparing to launch mines into the Strait of Hormuz. In response, Iran launched missiles at US sites in Jordan, all of which were intercepted.

The rising energy prices have fueled stubbornly high inflation, exceeding the Federal Reserve's 2% target. This has had a significant impact on household spending and consumer confidence, making it more complicated for the Fed to determine its interest rate policy.