Middle East Conflict Sends Oil Prices Soaring Towards $100 a Barrel

The escalating conflict in the Middle East is driving oil prices higher, with Brent crude approaching $100 per barrel. This surge has heightened concerns of accelerating inflation and forced the Federal Reserve to consider raising interest rates.

The US Dollar has reached two-week highs due to strong macroeconomic data, 'hawkish' comments from FOMC officials, rising Treasury yields, and higher oil prices. The greenback is benefiting from its status as a safe-haven asset amidst the conflict in the Middle East.

FOMC Governor Mark Barr stated that if inflation does not slow down soon, interest rates should be raised. As a result, the probability of the Fed tightening monetary policy in September has risen to 68%.