WTI Surpasses $100... Oil Prices and Inflation Up Due to Shipping Route Instability

[Anchor]

As international oil prices surge due to Middle East instability, U.S. producer prices have risen compared to the previous month. Driven by expectations that the Federal Reserve could raise interest rates, the U.S. stock market declined once again.

This is reported by Kim Hyunwoo from New York.

[Reporter]

The U.S. producer price index for August rose 0.4% from the previous month.

Compared to the same month a year ago, it increased by 5.4%, expanding the upward trend from July, which recorded a 4.8% increase.

Core producer prices, excluding volatile food and energy, were tallied as having risen 0.2% from the previous month.

The surge in international oil prices, triggered by renewed military clashes between the U.S. and Iran in the Middle East, had the greatest impact on producer prices.

The problem is that the frontlines in the Middle East are growing wider and the depth of the conflict is deepening.

Amid the prolonged blockade of the Strait of Hormuz, foreign media reports have also emerged that the pro-Iranian Houthi rebels in Yemen are on the verge of seizing control of the Bab el-Mandeb Strait, a core crude oil shipping route in the Red Sea.

Concerns that logistics could face further disruptions have accelerated the upward trend in international oil prices.

Both Brent crude and West Texas Intermediate surged by over 6%, comfortably crossing the $100 mark.

[Interview / Jason Brown / CEO, Alexis Investment: Even if oil prices do not skyrocket fatally further, the question is how long we can endure at the current level. It is a frustrating situation, and I think this frustration sometimes acts as a burden on the market.]

As expectations grew that the Federal Reserve could raise interest rates next week to tame inflation, the yield on the 30-year U.S. Treasury bond hit its highest level since 2007, and all three major New York stock indices fell.

(Video Journalist: Lee Hee-hoon)
※ Please note: This article was translated by AI and may contain errors.