Oil Prices Surge Amid Global Supply Concerns

Asian share markets declined on September 14 as oil prices surged due to supply concerns. Brent climbed 3 percent, reaching $107.84 a barrel, while US crude rose 2.8 percent to $102.85 a barrel.

The increase in oil prices was fueled by new strikes on Saudi Arabia and ships in the Gulf, which added to existing tensions over global energy supplies. The meeting between Iran and Gulf Arab states scheduled for September 14 to discuss a deal on opening the Strait of Hormuz was postponed.

Analysts fear that oil prices could remain elevated for an extended period, leading to higher inflation globally.

In the US, markets are pricing in an 86 percent chance of a 25 basis point rate hike by the Federal Reserve on September 16, with another increase expected in December. This would be the first hike since mid-2023.