Oil Prices Surge Ahead of Crucial US Inflation Data

Oil prices rose on August 12 as traders anxiously await the release of key US inflation data, which could guide the Federal Reserve's plans for interest rates. The consumer price index (CPI) figures are closely watched, especially after a report last week showed the world's top economy lost over 20,000 jobs in July.

The Fed is under pressure to tackle stubbornly elevated inflation above its two percent target, compounded by the Iran war since February. Some board members have called for an interest rate hike, and investors are betting on at least one before the end of the year. Forex.com's Fawad Razaqzada noted that 'crude oil prices have surged in the last few days because the Strait of Hormuz remains effectively shut', with no signs of progress between the US and Iran.

Main crude contracts rose, with a 14 percent increase in the past week. Equity markets were mixed ahead of the CPI release, but Seoul's Kospi climbed over three percent due to strong earnings reports from chipmakers SK hynix and Samsung.