Iran-US Tensions Spark Oil Price Surge Amid Inflation Fears

Global markets remained on edge as tensions between the US and Iran escalated, leading to increased prices for oil and gold. The Middle East has seen new attacks on shipping in recent days, with both sides trading barbs and neither showing signs of backing down.

The Strait of Hormuz, a vital shipping route, remains closed due to the ongoing conflict, which is affecting energy prices worldwide. US crude rose 0.8% to $83.89 a barrel, while Brent increased by 0.7% to $89.49 per barrel.

Markets are waiting for the release of US consumer price data later in the day, which will provide insight into inflation expectations and the potential for a Federal Reserve rate hike next month.