Murban, the UAE crude oil brand, hit the record high level of $127 a barrel this morning. It became the most expensive crude oil in the world amid growing Hormuz tension and widening Houthis-Saudi conflict.
OPEC crude oil hit $115 per barrel while other brands remained well below $110 a barrel today.
Meanwhile, Asian stocks slide as oil prices rise and Fed rate hike bets grow
Most Asian stock markets fell Tuesday as oil prices extended gains and investors increased bets on a Federal Reserve interest rate hike this week.
Meanwhile, technology stocks recovered slightly after a sell-off triggered by growing concerns over the rapid expansion of artificial intelligence.
Oil prices continued rising as the Middle East crisis showed little sign of easing and shipping routes faced growing disruption.
Both major crude benchmarks gained more than one percent during Tuesday’s trading session.
Oil surge fuels inflation concerns
Yemen’s Houthis have seized control of parts of the Red Sea coast and the Bab al-Mandab Strait, according to reports.
The strategic waterway has gained importance as the wider US-Iran conflict continues to disrupt shipping through the Strait of Hormuz.
Saudi Arabia also closed its East-West pipeline over the weekend following drone attacks attributed to the Houthis.
The latest developments pushed crude prices above $100 a barrel this month and intensified concerns about global inflation.
However, oil prices eased slightly Monday after US President Donald Trump said Iran wanted to reach an agreement with Washington.
Markets await Federal Reserve decision
Rising energy costs have increased pressure on central banks as policymakers attempt to control inflation.
US diesel prices used for transportation and agriculture exceeded $6 per gallon Friday, adding to concerns about higher consumer costs.
The 10-year US Treasury yield remained just below five percent after surpassing that level Monday for the first time since October 2023.
Following the European Central Bank’s rate increase last week, markets are now focused on the Federal Reserve.
Traders currently see more than a 90 percent probability of another Fed rate hike.
Asian markets mostly decline
Hong Kong, Shanghai, Sydney, Singapore, Wellington and Taipei declined, while Tokyo, Seoul and Manila posted modest gains.
Technology shares provided some support in Japan and South Korea after Monday’s losses.
Samsung and SK hynix gained in Seoul, while Kioxia and SoftBank rose in Tokyo.
The recovery followed comments calling for a coordinated slowdown in AI development to better assess potential risks.
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