Global markets are reacting to the upcoming Federal Reserve interest rate decision scheduled for Wednesday. Ahead of this event, crude oil prices have surged, while assets such as Bitcoin, gold, silver, and copper have experienced a decline in value.
Brent crude rose by 2.75 percent to $107.48, and West Texas Intermediate gained 2.51 percent to $102.56. The price of crude has increased by 8 percent over the past week, surpassing the $100 mark for the first time since July.
The rise in oil prices is linked to supply disruptions, including damage to the Saudi Arabian East-West pipeline and attacks in the Bab el-Mandeb corridor. These regions account for a combined 8 to 9 percent of the global oil supply.
Market participants now estimate an 86.3 percent probability that the Federal Reserve will raise its target rate to 375–400 basis points. This expectation has intensified following recent US inflation data, which was higher than analysts initially anticipated.
The cryptocurrency market saw a 4.32 percent drop in total capitalization to $2.62 trillion over 24 hours. Bitcoin traded near $76,718 following a 4.4 percent weekly decline, while Ethereum fell 1.79 percent to $2,478.43.
Precious and industrial metals also trended downward. Gold prices eased by 0.22 percent to $4,340.58, silver dropped 0.25 percent to $64.11, and copper declined by 1.08 percent to $6.40 as investors adjust positions before the Fed meeting.
