Middle East Conflict Sends Oil Prices Soaring to Nearly $100 a Barrel
Oil prices have been rising steadily over the past few days, with Brent crude futures climbing to nearly $100 a barrel for the first time since late June. The increase is largely due to escalating tensions in the Middle East, where Iran-backed Houthis attacked Saudi cities and US forces struck Iranian oil tankers.
The Strait of Hormuz, a strategically important shipping route, has been a major concern for global energy supplies. Rising oil prices have led to increased concerns about inflation and its impact on monetary policy worldwide.
Investors are closely watching the upcoming US consumer price data, due out Friday, which will provide insight into the country's inflationary pressures. Markets are currently pricing in roughly even chances of a quarter-point Federal Reserve rate hike or a hold at next week's policy meeting.