Oil Prices Soar as Middle East Tensions Intensify

Oil prices surged to new highs as tensions in the Middle East intensified, with WTI crude rising above $100 a barrel for the first time since May. The increase was driven by escalating attacks and the risk of prolonged supply disruption, which heightened fears of tighter global supplies.

The six-month Brent future also rose 1.55% to $86.09, its highest level since early June, indicating that the market was pricing a more extended period of elevated oil prices.

Meanwhile, US producer inflation topped forecasts in August, with a 5.4% year-over-year increase, slightly above the consensus of 5.3%. This adds to evidence that pipeline price pressures remain elevated at a time when oil prices have also surged.