Oil Prices Surge, Fueling Inflation Worries and Rate Hike Concerns

Asian shares fell as oil prices spiked due to supply concerns and potential interest rate hikes in the US and Japan. Brent crude rose 3% and US crude gained 2.4% after attacks on Saudi Arabia and ships in the Gulf. Investors braced for possible rate hikes, with the Fed seen hiking rates by 25 basis points on Wednesday, and again by December. The hot US consumer price report led to a 86% chance of a rate hike, with analysts fearing oil prices could stay elevated for a lengthy period, stoking inflation globally.