Crude pushes towards $100 on Mideast flare-up, fanning inflation fears
Summary
Oil prices surged toward $100 a barrel after renewed conflict in the Middle East raised fears of supply disruptions and higher inflation. Markets weakened as investors looked ahead to key US inflation data and the Federal Reserve's next move on interest rates.
Key Points
- Brent crude climbed to $99.68 and West Texas Intermediate rose toward $95 as Middle East tensions intensified.
- Iran said it struck a US military base in Jordan and threatened oil tankers near Kuwait and Bahrain, while Saudi Arabia and Iran-backed Houthis exchanged strikes.
- Rising energy costs are keeping global inflation elevated and increasing pressure on central banks, including the Federal Reserve, to consider further rate hikes.
- Asian and European stock markets were mixed to lower as investors reacted to the risk of prolonged supply disruptions.
