Oil Gains and Stocks Trade Mixed Amid Growing Gulf Tensions
Brent oil rose to 113 dollars as Gulf tensions fueled inflation fears. Fed Chair Jerome Powell said the bank will monitor the war impact on the U.S. economy.
Global energy markets saw a significant uptick on Monday as benchmark oil prices extended their gains. Investors are increasingly focused on a conflict in the Gulf that has raised fears of persistent inflation and a potential global recession. The United States has engaged in discussions regarding the war, which has entered its fifth week following initial military actions involving Iran.
Brent crude futures rose to $113.17 per barrel, a 0.53% increase, while U.S. crude surged 3.41% to reach $103.04. Analysts are closely monitoring the Strait of Hormuz, a critical maritime passage for a fifth of the world's oil and liquefied natural gas. Madison Cartwright, a senior geo-economics analyst at Commonwealth Bank of Australia, suggested that the strategic importance of the strait gives involved parties little incentive to reach a quick resolution.
