Oil Price Spike to $100 Triggers Inflation Fears Ahead of Interest Rate Decisions

Oil prices surged above $100 per barrel on September 9, sparking inflation fears ahead of crucial interest rate decisions by central banks. This marks the first time oil has crossed the triple-digit threshold since July.

The catalyst for the rally is the ongoing US-Iran conflict, which has disrupted global oil supply through the Strait of Hormuz. The Strait's traffic has been severely impacted since hostilities began, with every barrel that doesn't transit smoothly pushing prices higher.

The national average gasoline price in the US has climbed to approximately $4.22 per gallon, while diesel has hit record highs near $5.92 per gallon. European gas prices have also risen sharply in response, putting pressure on energy costs globally.