Geopolitical Tensions Fuel Oil Price Rise Ahead of US Inflation Data

Oil and gold prices rose on Wednesday as geopolitical tensions increased ahead of key U.S. inflation data, according to Reuters.

The U.S. and Yemen's Iran-aligned Houthis reported separate attacks on shipping, while Asia was rattled by an early morning missile launch by North Korea, Kyle Rodda, a senior financial market analyst at Capital.com, noted in a statement.

U.S. crude rose 0.89% to $83.94 a barrel and Brent advanced to $89.60 per barrel, up 0.78%, as markets remained focused on the U.S. consumer price index data for signals of timing for a potential Federal Reserve rate hike.

Skye Masters, head of markets research at National Australia Bank, said on a podcast that everyone's eyes are on the CPI report: 'If you do see the print coming in at zero, I think you'll obviously see a reasonable rally in Treasuries as the market unwinds expectations for the Fed tightening.'