Forex
Oil Surge Past $100 Triggers Rate Hike Fears Amid Middle East Tensions
Asian stocks took a hit on September 10 as oil prices surged past $100 per barrel, fueling inflation fears and rate hike expectations. The Brent crude price reached a high of $101.94, while West Texas Intermediate peaked at $97.79.
The rally was driven by resurgent Middle East hostilities, with the US and Iran exchanging strikes around the Strait of Hormuz. This has led to speculation that central banks, including the Federal Reserve, will have to hike interest rates to tame prices.
US diesel is already at a record high of almost $6 per gallon, while Brent crude has surged over 20% in less than a week. The European Central Bank is tipped to lift borrowing costs on September 10.