FTSE 100 Set for Losses as Oil Prices Soar Amid Inflation Fears

The FTSE 100 index is expected to open lower on Wednesday morning due to rising oil prices and inflation concerns. Brent crude reached nearly $98 per barrel, its highest level since July 23.

Bank of England Governor Andrew Bailey warned that risks to inflation remain 'on the upside,' citing energy prices 'could be higher still' in coming months. The Strait of Hormuz blockade has disrupted global supply chains and fueled broader inflationary trends.

Dan Coatsworth, AJ Bell's head of markets, cautioned that investors should be alert but not alarmed when oil trades above $90 per barrel. The impact on markets depends on the reasons behind rising oil prices and how long they remain elevated.