Oil Prices Soar Amid Middle East Tensions, Gold Falls on Rate Hike Bets

Oil prices continued their upward trend on September 7 amid growing concerns over supply disruptions in the Middle East. The US-Iran tensions, including tit-for-tat strikes between the two countries on vessels sailing through the Strait of Hormuz, have heightened fears of a prolonged supply disruption.

Brent crude futures rose by 52 cents, or 0.54%, to $96.80 a barrel, while U.S. West Texas Intermediate crude increased by 66 cents, or 0.72%, to $92.14 a barrel.

Gold prices, however, slipped as stronger-than-expected US payrolls data and escalating tensions in the Middle East raised the prospect of an interest-rate hike at the Federal Reserve's upcoming meeting on September 15-16.

The dollar was on shaky ground despite a rise in US rate hike bets, with broader inflationary pressures potentially forcing global central banks to tighten policy in tandem.