Oil Surges Above $100 as Bitcoin Plunges Below $78,000
Oil prices have surged above $100 per barrel for the first time since July as escalating attacks on shipping near the Strait of Hormuz raise concerns over supply disruptions. The latest rally followed an increase in attacks on shipping since the Iran war began, with Iran saying it attacked 10 ships near the Strait of Hormuz on Wednesday after the US hit five Iranian oil tankers.
US West Texas Intermediate crude gained 6.25% to $102.05 a barrel, while Brent crude futures rose 5.9% to $107.18 per barrel. Both benchmarks have risen more than 30% from lows reached in early August. Analysts point to the persistent disruption risk as a new normal for the oil market.
The US producer-price data also weighed on gold and Bitcoin, with hotter inflation numbers increasing expectations of a Federal Reserve rate hike. Gold prices fell over 1% to $4,320 an ounce, while Bitcoin dropped below $78,000 for the fourth consecutive session.