According to AFP, oil prices rose more than 1% in the trading session on September 9, with Brent oil at one point reaching 99.67 USD/barrel, approaching the 100 USD mark for the first time since July West Texas Intermediate (WTI) oil also approached 95 USD/barrel, the highest level since June.
The increase occurred as Middle East tensions continued to escalate, raising concerns about disrupted oil supplies. The US-Iran conflict has entered its 7th month but shows no signs of cooling down, despite statements from the White House about the possibility of a near agreement.
The focus of the market is the Strait of Hormuz, a vital maritime route for global oil and gas transportation. Iran continues to control this route while the US increases pressure on Iranian ports and the economy.
On September 9, Iran announced an attack on a US military base in Jordan after Washington attacked Tehran's ships in the Strait of Hormuz. According to IRNA, Iran also warned of targeting oil tankers off Kuwait and Bahrain, while Houthi and Saudi Arabia continued to fight in the Red Sea, increasing the risk to oil shipping routes.
Rising oil prices are posing a new problem for central banks, as high energy costs risk prolonging inflationary pressure. The higher oil prices remain, the more transportation, production and many other commodities are under increasing pressure.
Expert Fawad Razaqzada of FOREX. com said that the Middle East conflict continues to worry investors about supply disruptions and inflationary consequences from high oil prices.
According to him, the US labor market is still relatively stable while energy prices are rising, creating signals that could force the Fed to maintain a tough stance on interest rates.
All attention is now focused on the US consumer price index (CPI) data expected to be released on September 11. This is considered a key data for investors to assess the possibility of the Fed raising interest rates next week.
In Europe, pressure is also increasing as the European Central Bank (ECB) is forecast to raise interest rates on September 10. Rising energy prices may make the process of bringing inflation back to the target more difficult.
The prospect of higher interest rates is putting pressure on the financial market. All three major Wall Street indexes fell, while Asian markets moved in opposite directions.
Thus, the 100 USD/barrel mark is not only a psychological threshold for the oil market but also a new test for the central banks' fight against inflation.
