Oil Prices Surge Amid Geopolitical Tensions, Central Banks Prepare to Hike Rates

Rising oil prices and geopolitical tensions are rattling global markets, pushing investors to reevaluate their strategies ahead of key inflation data releases.

Brent crude futures rose nearly 1.5% to $97.6 a barrel, the highest level in seven weeks, as concerns over supply disruptions mounted following the U.S. strike on Iranian tankers and Iran's retaliatory missile strikes against two U.S. Navy ships.

The oil price surge has been particularly sharp, with prices hitting almost 8% last week and now standing at 35% above their pre-war levels in late February.

Central banks are poised to raise interest rates as a result of the rising energy costs, making this week's U.S. consumer price data reading a critical focus for investors.

The European Central Bank is expected to lift rates to 2.75% on Thursday, with futures implying a 75% chance of another hike to 3.0% by December, while the Bank of Japan may raise rates a quarter point at its meeting on September 18.