Finance

Crude oil prices advanced sharply, with international benchmark Brent crude surging over 4% to surpass $104 per barrel. The renewed energy rally sparked fresh inflationary fears on Wall Street following a report highlighting potential military escalations in the Iran conflict. Ongoing attacks by Yemen-based Houthi rebels against shipping and oil facilities in the Middle East have compounded fears of supply chain disruptions.

The Federal Reserve released minutes from its latest policy meeting, confirming its aggressive stance against sticky inflation. Following a benchmark interest rate hike to a target range of 3.75% to 4.00%, the central bank indicated that additional rate increases could happen before the end of the year. Market participants are increasingly resetting expectations, bracing for an extended period of higher corrective interest rates.

The U.S. goods and services trade deficit widened substantially to $105.6 billion, well above previous consensus estimates. Driving the expansion was a record high in imports, which hit $420.8 billion and underscored resilient domestic economic activity and robust private consumption. While indicating a healthy appetite from consumers and businesses, the sharp rise in foreign imports is also triggering worries that higher foreign product and energy costs could fuel further domestic inflation.