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Inflation · Iran War · Market Volatility · Oil Prices
Crude oil prices have surged past $100 a barrel for the first time in over three and a half years, driven by the escalating Iran war.
Brent crude reached $107.97, a 16.5% jump, while West Texas Intermediate hit $106.22, up 16.9% from Friday's close. The conflict, now in its second week, severely impedes oil production and shipping, particularly through the critical Strait of Hormuz, which typically handles 20% of global oil supply.
Countries like Iraq, Kuwait, and the UAE have cut production due to export difficulties, while attacks on oil facilities further exacerbate supply concerns. This sharp increase in energy costs is fueling inflation worries, with U.S. gasoline prices rising by 47 cents to $3.45 a gallon and diesel by 83 cents to $4.60.
Natural gas prices also climbed 4.6%. The market reaction is immediate and negative, with U.S. stock index futures for the S&P 500, Dow, and Nasdaq all pointing to a lower open, following significant declines on Friday.