Middle East Tensions Fuel Oil Price Spike

Oil prices surged by more than 6% in a single day amid escalating tensions in the Middle East. The rise was triggered by reciprocal attacks between the United States and Iran on ships in the Persian Gulf, as well as statements from US President Donald Trump indicating no swift end to the confrontation.

The price of West Texas Intermediate (WTI) surpassed $102 per barrel, while Brent reached $107. This increase has intensified concerns about further acceleration in inflation, particularly in the United States.

Analysts note that the U.S. Producer Price Index rose by 5.4%, exceeding expectations. As a result, investors are increasingly allowing for the possibility that the Federal Reserve may raise interest rates instead of cutting them.