Oil Prices Soar Amid Waning Hopes for US-Iran Deal
Brent crude oil prices have been on a tear, reaching as high as $90.02 per barrel on Tuesday after hopes of a US-Iran deal to end the conflict faded.
The price surge is a result of diminished expectations for a quick agreement between the two nations, with both sides engaged in a 'game of chicken' over control of the Strait of Hormuz, as described by Stephen Innes, global strategist at Quintex Intel.
With tensions running high and oil prices elevated, concerns about inflation are on the rise, increasing the likelihood of interest rate hikes. The Federal Reserve's (Fed) next move will be closely watched after a surprise loss of 20,000 jobs in the US economy last month eased some fears of a hike.
The price jump has also set off alarm bells for traders, who are awaiting the release of US consumer price data on Wednesday. This could play a key role in guiding the Fed's decision on its next move.