Oil Prices Soar on Escalating Middle East Tensions

Oil prices continued their upward trend on Tuesday as tensions in the Middle East escalated. The Brent crude futures price rose to $97.34 a barrel, its highest level since July 24, while U.S. West Texas Intermediate crude was at $92.63 a barrel.

The increase is largely due to concerns over supply disruptions following Iran's threat to retaliate against any new U.S. attacks on its assets. Traders are building a risk premium into prices as tensions around the Strait of Hormuz, a key artery for global crude shipments, remain high.

Gold, however, remained steady near $4,400 an ounce. While Middle East tensions have pushed up inflationary concerns and led traders to price in a roughly 60% likelihood that the Federal Reserve will hike interest rates next week, gold has not seen a significant increase.