Oil prices climbed above $100 a barrel on Thursday as escalating attacks on shipping near the Strait of Hormuz intensified supply concerns, while hotter-than-expected US producer price data reinforced expectations of a Federal Reserve rate hike, weighing on gold and Bitcoin.
Oil surges on supply disruption fears
Brent crude futures jumped 5.9% to $107.18 a barrel, while US West Texas Intermediate (WTI) crude gained 6.25% to $102.05. Both benchmarks have rallied more than 30% from their early August lows. The latest surge followed an increase in attacks on shipping since the Iran conflict began, with Iran claiming it struck 10 vessels near the Strait of Hormuz on Wednesday after US forces hit five Iranian oil tankers.
Shipping through the strait remains restricted, and Iran-aligned Houthis seized Yemen's port of Mocha on Thursday, adding to concerns over Red Sea traffic. Attacks from Yemen on Saudi energy facilities have also broadened the market risk beyond the strait, according to Simon-Peter Massabni, head of business development at XS.com.
“With prospects for a definitive resolution to the Iran conflict dimmed and Brent crude prices recently topping $100 for the first time since July, crude oil markets are now settling into a prolonged new normal where disruption risk is persistent, not episodic,” S&P Global Energy said in an analysis.
China's oil demand is another factor for traders. The world's largest crude importer has increased purchases in recent weeks after months of subdued demand, according to ING analysts. US crude inventories fell by 391,000 barrels to 424.1 million barrels last week, compared with analysts' expectations for a 1.55-million-barrel decline. OPEC also lowered its 2026 global oil demand growth forecast to 380,000 barrels per day, its fifth consecutive downward revision, while OPEC output fell by 640,000 bpd in August, according to a Reuters survey.
Gold falls as inflation lifts rate-hike bets
Gold prices fell more than 1% on Thursday as higher oil prices and stronger US inflation data increased expectations of a Fed rate hike. Spot gold declined 1.8% to $4,320 an ounce, while US gold futures settled 2.19% lower at $4,364.20. The decline came after the US Producer Price Index (PPI) showed final-demand prices rose 0.4% in August, following an upwardly revised 0.1% gain in July. On a 12-month basis, producer prices increased 5.4%, up from 4.8% in July.
Kyle Rodda, senior financial market analyst at Capital.com, said the PPI data indicated “that there has been a bit of a pickup in underlying inflation in the U.S. economy, and a part of that is due to rising energy costs.”
Bitcoin slips below $78,000
Bitcoin fell below $78,000, marking a fourth consecutive session of declines, trading between $76,000 and $78,500 and touching an intraday low near $76,663. The cryptocurrency is now about 39% below its October 2025 high of $126,000 and remains within the $60,000-$80,000 range that has dominated trading since February. The latest decline came as oil prices climbed above $105 and hotter inflation data increased expectations for higher US interest rates, which can raise the opportunity cost of holding non-yielding assets like Bitcoin.
Spot Bitcoin ETFs also recorded approximately $166.8 million in outflows over a recent two-day period, while crypto-market liquidations exceeded $386 million over a 24-hour period. The $76,000 area has emerged as a key support level, while $80,000 continues to act as resistance.
US PPI keeps Fed in focus
US producer prices increased 0.4% in August, matching economists' expectations, while core PPI rose 0.2%, below the 0.3% forecast. Energy prices increased 4.2%, providing the biggest contribution to the headline increase. The data comes ahead of the Federal Reserve's September 15-16 policy meeting. Traders were pricing in a 70% probability of a rate increase next week, up from 62% before the PPI release, according to the CME FedWatch Tool. However, a majority of economists polled by Reuters expect the Fed to hold rates steady.
The PPI data is also being assessed alongside changes to the methodology used to feed some PPI components into the Fed's preferred PCE inflation measure. The combination of elevated energy prices and persistent inflation leaves the Fed balancing inflation risks against economic growth and employment as it approaches its next policy decision.
This article is for informational purposes only and does not constitute financial advice.
