Middle East Tensions Fuel 4% Crude Oil Price Surge Amid Interest Rate Anticipation

Renewed attacks on oil infrastructure in the Middle East have weighed heavily on crude oil prices. The shutdown of Saudi Arabia's East-West pipeline and fading hopes for diplomatic progress to end disruption in the Strait of Hormuz have contributed to this downward pressure.

The global crude oil price benchmarks surged about 4 percent as markets anticipated interest rate hikes from the Federal Reserve and Bank of Japan. Both central banks are expected to raise rates by a quarter percentage point, aiming to combat inflationary pressures partly driven by rising crude oil prices.