Energy Preview: Crude oil surges on renewed conflict between US and Iran

Crude oil prices spiked higher on Monday morning in Asia amid ongoing tensions in the Middle East that raises oil-driven inflation concerns. The US military reportedly struck Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz, the first military action against Iran in more than a month. This comes at a time when Fed is already sounding hawkish on interest rates. The Fed Chairman Kevin Warsh at the Jackson Hole economic symposium warned on Friday that inflation is not slowing significantly and that unless policymakers become confident it is, the central bank has ?work to do.? Currently, WTI crude oil futures are quoting at $85 per barrel, up nearly 2% while Brent is also higher by over 2% at around $90 per barrel mark.

Powered by Commodity Insights