Oil Prices Soar Above $100 as Fed Rate Hike Looms

Crude oil prices continued to rise on Tuesday, reaching over $100 per barrel for the first time this month. The surge in energy costs has increased inflation worries globally and put pressure on central banks to act.

The situation remains volatile due to ongoing tensions in the Middle East, particularly in Yemen where Houthi rebels have taken control of a strategic shipping outlet. This move has limited options for international trade, with many ships forced to take longer routes around Africa.

As a result, major Asian stock markets experienced losses on Tuesday, while US diesel prices topped $6 per gallon over the weekend. The 10-year US Treasury yield has also risen, reaching just below 5% and sparking concerns about a potential interest rate hike by the Federal Reserve this week.

The market is closely watching the Fed's decision, with traders predicting a more than 90% chance of a rate increase. In Tokyo, tech firms Samsung and SK hynix showed signs of recovery from Monday's losses, while in Hong Kong, Shanghai, Singapore, Wellington, and Taipei all dropped.