Geopolitics Sends Oil Prices Soaring Amid Interest Rate Hike Bets

Oil prices surged on Monday due to renewed geopolitical tensions in the region. The Brent crude price increased by 3% following new attacks in Saudi Arabia and the Gulf, which heightened concerns about disruptions to global energy supplies.

The instability has also postponed an essential meeting that could have eased tensions between the countries involved.

Markets are pricing in a high probability of interest rate hikes by the Federal Reserve and the Bank of Japan this week, amid inflation concerns spurred by the spike in oil prices.