Oil Prices Soar Amid U.S.-Iran Tensions and Inflation Concerns

Global oil prices continued their upward trend on Tuesday, reaching near six-week highs amid concerns over inflation. WTI crude oil futures rose approximately 2.5%, while Brent crude oil futures gained more than 1.5%. The surge in energy prices is exerting upward pressure on U.S. Treasury yields as traders grow increasingly concerned about the potential for elevated energy costs to drive up inflation.

U.S.-Iran tensions are contributing to the rise in oil prices, with mutual airstrikes between the two countries over the weekend exacerbating concerns. Dan Coatsworth, Market Director at UK investment platform AJ Bell, noted that Brent crude prices have risen to six-week highs and that investors will closely monitor U.S. inflation data released later this week.

In other commodities, three-month copper futures on the London Metal Exchange rose more than 1%, hovering around $14,700 per tonne.