Oil Prices Soar as Middle East Tensions Escalate

A spike in Middle East tensions has pushed oil prices higher after the US launched strikes against Iran following an Iranian attack on oil ships in the Strait of Hormuz.

The recent escalation comes as the internal battle between hardliners and more moderate officials in Iran continues, with former Supreme Leader Ali Khamenei's burial on July 9 keeping the door open to fresh hostilities.

The Reserve Bank of New Zealand (RBNZ) also delivered a hawkish hike, increasing the official cash rate to 2.5% and signaling further rate hikes are possible depending on inflation and economic conditions.

This has raised questions about other central banks, particularly the European Central Bank, which may consider hiking rates at their July meeting to reduce second-round effects of higher oil prices.