Oil prices have climbed once more today, as the international benchmark reached a one-month peak, due to a diplomatic stalemate between the United States and Iran boosting fears of an extended closure of the Strait of Hormuz.
Brent crude, the worldwide oil standard, has risen 3.4% to $114.7 a barrel, continuing a week-long surge. WTI, the US standard, has risen 3.5% to $103.4 per barrel.
“Deutsche Bank analysts indicated that worries regarding a longer stagflationary impact have increased, highlighting that Brent futures contracts for later this year were trading near the peaks seen in late March.” Stagflation denotes a time characterized by sluggish economic expansion and elevated inflation.
US President Donald Trump has expressed dissatisfaction with Tehran’s recent offer to conclude the conflict and has directed his staff to get ready for a prolonged blockade of Iran, the Wall Street Journal reported Tuesday evening.
US stock futures showed a mixed performance, indicating a careful opening on Wall Street prior to a series of major tech earnings and a Federal Reserve meeting anticipated to be Jerome Powell’s final one as chairman.
Amazon, Alphabet, Meta, and Microsoft are all expected to announce their financial results after the market closes.
Investors are wagering that the Fed will keep interest rates steady until there is greater clarity on how the war in Iran will affect consumer prices.
Elevated oil prices pressured European stock markets, which were generally down during mid-session trading.
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