Iran Tensions Send Oil Prices Higher Amid Global Market Volatility
Oil prices have regained some ground after a brief respite in July driven by hopes for an end to the war with Iran. The Brent crude price gained 2.7% on August 17, but only rose 0.1% to $90.94 a barrel early on August 18.
The looming deadline for an agreement to end the conflict has expired, and analysts say that rising oil prices have been a major factor behind stubbornly high inflation. Despite this, benchmark U.S. crude rose 0.6% to $84.99 a barrel.
Global shares were mostly lower on August 18, as worries about inflation countered the boost to sentiment from robust corporate earnings reports. However, analysts say that AI has helped to counter these concerns, and some markets have even benefited from the investment in artificial intelligence.