A driver fills his vehicle up with gas in Los Angeles, California on September 8, 2026. (AFP Photo)
Oil prices jumped more than one percent towards $100 on Sept. 9 and stocks struggled in Asian markets as a fresh flare-up in the Middle East crisis stoked supply concerns, putting upward pressure on inflation ahead of key U.S. data at the end of the week.
With the U.S.-Iran conflict now in its seventh month and showing no sign of calming despite White House claims of an imminent deal, investors are growing increasingly anxious that the Federal Reserve will have to hike interest rates to cap surging consumer prices.
Both main crude contracts jumped more than one percent on Sept. 9, with Brent hitting as high as $99.67 and a whisker away from the $100 last touched in July. West Texas Intermediate was heading towards $95 for the first time since June.
The surge in energy costs has kept inflation elevated globally and is putting pressure on central banks to hike borrowing costs, with the European Central Bank tipped to do so on Sept. 10.
All focus is on the release of the U.S. consumer price index on Sept. 11, which is seen as the key to whether the Fed lifts rates next week or not.
"The continuing conflict in the Middle East is keeping concerns over supply disruptions, and that in turn is worrying investors about the inflationary consequences of elevated oil prices," said Fawad Razaqzada, a market analyst at FOREX.com.
"For the Fed, the combination of resilient US employment and renewed pressure from energy prices are both hawkish signals.
"A sustained rise in oil prices would risk reversing the progress on inflation that policymakers have been relying on to justify lower interest rates, while simultaneously squeezing consumers and businesses."
