Oil Prices Soar Amid US-Iran War Tensions
The global energy market is under pressure as oil prices surged by over 3% on Monday, following a series of attacks in the Red Sea and the Gulf of Guinea. The increased tensions between the US and Iran have created uncertainty about the world's energy supplies.
According to Trading Economics data, crude oil price gained 2.32% to $102.376 a barrel at press time, while Brent crude also rose by 2.52% to $107.251 a barrel.
The latest attacks have added to the fragility of the regional energy market, which is already affected by the ongoing US-Iran war. The Houthi group has reportedly continued its activities in the Red Sea region, taking control of the Greater and Lesser Hanish Islands and firing missiles and drones at Saudi military targets.
The Federal Reserve's next rate move is now under scrutiny as market participants assess whether higher energy prices will be a concern for the central bank. The CME FedWatch data shows an 86.5% chance of a 25 bps Fed rate hike at the September 16 meeting, which would lift the federal funds target range from 3.50%-3.75% to 3.75%-4.00%.