Oil Prices Soar on Geopolitical Tensions and Inflation Concerns

Crude oil prices rose on Wednesday due to escalating geopolitical tensions and caution ahead of key inflation data. U.S. WTI crude increased by 0.89% to $83.94 per barrel, while Brent crude gained 0.78% to reach $89.60 per barrel.

The surge in energy prices can be attributed to diminishing expectations of a de-escalation between the U.S. and Iran, ongoing uncertainties around the Strait of Hormuz, and recent Houthi maritime attacks.

Investors are closely monitoring the upcoming U.S. Consumer Price Index (CPI) report for July, which is expected to influence the Federal Reserve's rate decision in September.