As we enter the last quarter of the year, we can expect higher inflation and higher operating costs

Today, oil prices jumped to a four-month high with Brent up to US$109.29 per barrel while WTI climbed to $104.26 per barrel.

Earlier today, the Houthis launched missile and drone attacks on key Saudi Arabian installations. On Friday, a major pipeline in Saudi Arabia was blown up.

Ships passing through the crucial Strait of Hormuz have been significantly reduced as tensions in the region escalate.

“Short of stopping both oil price-affecting wars and curing the global refinery capacity problem, our fraternity is wondering where an inoculation against $120 Brent can be found,” said PVM analyst John Evans.

Rising oil prices have contributed to the 10-year U.S. Treasury yield going above 5 per cent on Monday, a first since 2023. 

The price of diesel in the United States is now at an all-time high of $6.25 per gallon.

With all this going on, the Federal Reserve is expected to increase interest rates on Wednesday.

President Trump is calling on countries to help get oil shipments through the Strait of Hormuz as the world economy becomes more dire.

“Oil is flowing through the Hormuz Strait. The countries of the world which have been no help to us whatsoever should and will reimburse the United States of America when this “ SCAM Confligation” is all over. We are doing it much more for others than we are for ourselves, and we have been for generations,” wrote President Trump on his Truth Social platform. 

Petrol and diesel prices are now at their highest since 2022.

Oil prices started this year at US$70 a barrel. 

“Despite US claims to the contrary, Hormuz is not under its control and oil is not flowing freely. Near-month futures continue to trade at a premium to the spot price, a recognition that disruption is expected to continue ratcheting up the pressure on the global economy,” said Chief Market Analyst at IG Group, Chris Beauchamp.