Oil Price Surge Threatens Global Economy as US-Iran Conflict Continues
Oil prices surged nearly 2% on Monday as the conflict between the US and Iran continued to escalate, further denting hopes for a resolution. The increase in oil prices has added to inflationary pressure and could lead to a rate hike by global central banks. Gold futures have been affected by this development, with prices closing down 3.4% last week.
The conflict reached its 184th day on Monday, with US forces striking two Iranian launchers on Larak Island. Iran retaliated by attacking two US bases in Jordan and the Al Minhad air base in the UAE. However, the UAE defence ministry denied that their air base was targeted.
The US Treasury Secretary Scott Bessent told Reuters that new secondary sanctions were likely to be unveiled weekly to pressure Iran. The number of visible commodity vessels transiting the Strait of Hormuz dropped to five a day over the weekend due to threats to shipping.