Oil price hikes further in global market
Crude oil prices have started to climb again in the world market after news of a US military air strike on Iran’s Qeshm Island. The report came just one day before the US midterm election. Brent crude, the international benchmark for fuel oil, rose 1.75 percent today to reach 106.60 dollars a barrel.
The price of West Texas Intermediate (WTI), the US benchmark, went up 1.7 percent to stand at 98.10 dollars a barrel. A day earlier, on Monday, oil prices had fallen sharply by more than 7 percent. That drop came after positive signs that the presidents of the United States and Iran may settle the ongoing conflict through diplomacy.
But the news of the strike on Qeshm Island came right after that relief and has created fresh unrest in the market. High oil prices in the world market have pushed up inflation and gas prices many times over in the United States. This has become a big worry for Mr. Trump’s administration ahead of the coming midterm election.
Last week, two regional heads of the US Federal Reserve warned that interest rates may need to rise further to keep inflation under control. As a general rule, however, high interest rates slow economic growth and raise costs for consumers.
