Oil Prices Soar Amid Middle East Tensions

Oil prices surged by 6.2% on Wednesday to $87.14 per barrel as fighting between Iran and US forces in the Middle East escalated, raising concerns about global oil supplies.

The jump in oil prices comes after a tumultuous week for crude oil futures, which had swung from a low of $72 early this month to a high of $102 last week due to uncertainty over a potential deal between the US and Iran to allow oil tankers to move freely through the region.

The increase in oil prices has raised worries that inflation will reaccelerate, just as it had begun to slow more than expected. This, in turn, has left traders uncertain about what the Federal Reserve will announce after its two-day meeting on interest rates later in the day.

Traders are betting on a roughly 36% probability that the Fed will raise its main interest rate for the first time in three years, which could slow down the economy and undercut prices for stocks and other investments.