Oil prices extended their gains as traders monitored supply routes in the Middle East. Brent crude futures rose more than 2% to USD 108.06 a barrel, while West Texas Intermediate crude traded at USD 103.76.
The Middle East conflict has kept energy markets under pressure. Attacks involving Yemen’s Iran-aligned Houthis and delayed talks between Iran and Gulf countries have added uncertainty around regional supply. Saudi Arabia has also shut its East-West pipeline after attacks affected the route that allows oil shipments to bypass the .
“Energy is doing most of the damage on the inflationary front at present,” Ameriprise Financial chief market strategist Anthony Saglimbene said.
Higher oil prices can feed into fuel, transport and production costs, which remain important factors in the Federal Reserve’s inflation assessment.
