🔶 Oil price rises following continued U.S. attacks on Iran

In response to the ninth consecutive night of U.S. attacks on Iran and the situation in shipping in the Strait of Hormuz, oil prices surged sharply at the start of trading in Asian markets on Monday, 29 Tir (20 July).

The price of Brent crude for delivery in September rose by 2.72% to $90.50 per barrel. As reported by Agence France-Presse, the price briefly crossed $91 as well, which was the highest level since June so far.

West Texas Intermediate crude was also traded up 2.39%, at a price of $84.46 per barrel.

The rise in oil prices has once again raised concerns about inflation rates remaining elevated and making the path to rate cuts more complicated, but, according to Agence France-Presse, some analysts still believe that overall economic conditions are becoming more favorable.

According to one analyst, although the renewed increase in oil prices has introduced a new geopolitical risk to markets, the gradual decline in underlying inflation in the United States and easing labor market conditions indicate that this shock from higher energy prices will not necessarily lead to the start of a new period of broad and widespread inflation. In his view, the biggest risk arises if high oil prices last long enough to reduce households’ purchasing power and spending and put pressure on economic growth.