Middle East War Sends Oil Prices Soaring
The recent decision by the US Federal Reserve Board to raise its policy rate for the first time in three years has been attributed to several factors, including a strengthening US economy and increased artificial intelligence-related expenditures. However, experts argue that another significant factor driving this decision is the ongoing war in the Middle East.
The war has led to a sharp increase in oil prices, with crude oil trading at over $US100 a barrel. Additionally, gasoline and diesel prices have surged, with the average price of gasoline reaching $US4.47 a gallon and diesel $US6.50 a gallon, both record highs.
The US economy is not alone in feeling the effects of the war. The International Energy Agency reports that global crude oil supplies are still well below pre-war levels, and refined product prices continue to climb.