US Strike Sends Oil Prices Soaring Amid Fed Rate Hike Speculation
Global markets showed mixed results Monday as investors reacted to the US Federal Reserve's possible interest rate hike. In Europe, Germany's DAX lost 0.9% to 26,339.04, while France's CAC 40 edged 0.1% lower to 8,390.43. Markets in Britain were closed for a bank holiday.
The S&P 500 and Dow Jones Industrial Average futures declined by 0.2%, while Brent crude oil prices surged more than 3% after the US strike on Iranian rocket launchers. The international standard for Brent crude jumped to $91.40 per barrel, with U.S. benchmark crude oil trading 3.8% higher at $86.58 per barrel.
Stephen Innes of SPI Asset Management commented that 'the Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude.' However, Sunday's events reminded investors that 'quiet in the Strait of Hormuz is not the same as peace.'
The US dollar fell to 159.75 Japanese yen from 160.10 yen, while the euro rose to $1.1601 from $1.1580.