Oil Prices Soar Amid US-Iran Conflict Escalation

The global oil price jumped more than two percent on Wednesday after Iran retaliated against US attacks in the Middle East, sparking concerns about inflation and rate hikes.

The recent military action comes amid weeks of relative calm during which peace talks went nowhere. The US had earlier said it would aim for 'economic asphyxiation' of the Islamic republic, while Tehran vowed 'severe' consequences for renewed American attacks.

The Strait of Hormuz, through which about a fifth of world oil and gas passes, has been effectively closed for the foreseeable future, fueling worries that energy costs will not come down. This has sent inflation fears surging, with bond yields reaching multi-decade highs.