The crude oil benchmark West Texas Intermediate (WTI) rose further on Tuesday, thereby fueling concerns about further rising interest rates. According to media reports, the Yemeni Houthi militia launched attacks on Saudi Arabia. As a result, the largest oil-producing country in the Gulf region halted production at some facilities located near the border with Yemen. The Saudi Ministry of Energy announced that operations had been partially suspended temporarily.
Anyway, the Iran conflict remains unresolved. A reliable agreement between Washington and Tehran is still a long way off. On Friday, US inflation data could provide further insights into the impact of the ongoing Middle East conflict on inflation trends.
Oil price (West Texas Intermediate)
US inflation data in focus on Friday – US Federal Reserve could initiate rate hike at September meeting
US inflation data is expected on Friday at 2:30 PM. Economists expect an August consumer price inflation rate of 3.4 percent (compared to the previous month), following 3.4 percent in July as well.
According to the CME Group's „FedWatch Tool,“ 41.8 percent of market participants expect a pause in interest rates and 58.2 percent expect an interest rate hike at the meeting on September 16, 2026.
