Oil Tops $109 as Fed Rate Hike Odds Hit 70% — SkimNews
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- Brent crude hit $109.20/barrel after the biggest spike in attacks on Gulf shipping since the US-Israel war on Iran began, and is now up more than 50% from early July lows
- WTI crude topped $100/barrel for the first time since May, jumping 6.7% to $102.50 on Thursday
- Iran said it attacked 10 ships near the Strait of Hormuz on Wednesday after the US hit five Iranian oil tankers, with the IRGC pledging to escalate its response to any further strikes
- Houthis seized Yemen's port of Mocha on Thursday, further threatening Red Sea traffic as Gulf transit through the Strait of Hormuz remains restricted
- China stepped up crude purchases after months of subdued demand, boosting physical crude markets and amplifying the impact of supply disruptions
- US regular petrol averaged nearly $4.28/gallon according to AAA while the S&P 500 fell 0.6%, on track for a fourth straight loss
- Traders now see a near-70% probability the Federal Reserve raises rates at next week's meeting, up from 61% the day before — despite President Trump's consistent lobbying for cuts
Why it matters: The Fed rate-hike probability jumped 9 percentage points in a single session to 70%, directly contradicting Trump's push for lower rates and putting the White House and the central bank on a collision course. American drivers are already absorbing $4.28/gallon at the pump, with the article noting that higher fuel costs cascade into every product moved by truck to store shelves.
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