Oil Rises to Three-Month High as US-Iran Tensions Escalate
The global oil market has been on high alert due to escalating hostilities between the US and Iran, causing prices to reach a three-month high of $100 per barrel for Brent.
This marks a ninth consecutive session of gains for oil, with WTI approaching $95. The recent developments have heightened concerns over supply disruptions, leading to an increased risk premium in the market.
The US-Iran conflict has been ongoing for six years, and recent tit-for-tat strikes between the two countries have further exacerbated tensions.
Meanwhile, the Bank of England's Governor Andrew Bailey has pushed back on expectations of interest rate hikes, citing that they depend on economic and geopolitical developments rather than being inevitable. This comes as oil prices reach $100 a barrel, adding to inflationary concerns.