Brent crude hits $96.80 after US-Iran tit-for-tat tanker strikes
Rival attacks on oil tankers in the Strait of Hormuz have pushed Brent crude to $96.80, raising global fuel costs and inflation fears as markets brace for key Central Bank decisions.
Brent crude futures reached $96.80 a barrel by late Monday evening, up 52 cents or 0.54%. Prices climbed after tit-for-tat attacks between the U.S. and Iran targeted oil tankers sailing through the Strait of Hormuz and other maritime zones. U.S. forces struck three Iranian vessels off Kharg Island on Saturday, while Iran's Islamic Revolutionary Guard Corps stated it intercepted three additional tankers using unauthorized routes. A maritime intelligence firm described the exchanges as a major escalation in maritime conflict involving reciprocal economic pressure.
Oil surges have choked transportation of millions of barrels, spiking jet fuel prices from around $800 a tonne to over $1,450 recently. This follows May additions of fuel surcharges by airlines like Virgin Atlantic.
Market volatility increased as investors awaited critical inflation data due later in the week. The S&P 500 ended below its mid-August record highs, while the European STOXX 600 fell 0.1%. Expectations grew that the Federal Reserve and the European Central Bank might raise rates to curb inflation driven by geopolitical supply disruptions.
