Oil Price Surge, Geopolitics Weigh on Global Markets

Rising oil prices and geopolitical tensions are weighing on global markets as investors await key inflation data this week.

The price of Brent crude futures rose 0.6% to $97 a barrel, its highest level in seven weeks, after Tehran announced plans to declare a restricted zone outside the Strait of Hormuz following US-Iran attacks.

Diesel prices hit record highs last week and are now around 90% above pre-war levels, increasing costs for transport, shipping, farming, and manufacturing.

The European Central Bank is expected to raise interest rates to 2.75% on Thursday, while the Federal Reserve's decision on September 16 has a 58% chance of a rate hike.