Oil steadies after Saudi reroutes exports via Strait of Hormuz
Oil prices, which recently took a more than 9% dip, have steadied again. Brent crude is holding above $100 and West Texas Intermediate is around $96.
This bounce-back happened after Saudi Arabia rerouted its oil exports through the Strait of Hormuz, following a pipeline shutdown that had everyone worried about supply.
Possible Trump Pezeshkian meeting calms markets
The calm didn't just come from Saudi Arabia's quick action. There's also some high-stakes diplomacy at play.
US President Donald Trump and Iran's President Masoud Pezeshkian are set to possibly meet at the U.N. General Assembly, which has helped cool market nerves.
Meanwhile, Prime Minister Andy Burnham voiced support for Saudi Arabia against Houthi threats, showing how global politics are shaping what we pay for energy.
Energy prices up more than 60%
Even with this stability, energy prices are way up, more than 60% this year, driven by disruptions to Hormuz shipping lanes from the West Asia conflict and damage to energy infrastructure from the Russia-Ukraine war.
The US Federal Reserve and Israel's tensions with Iran keep markets on edge.
To help out, the US has proposed a $5 billion fund to rebuild affected areas and the US Federal Reserve raised interest rates to fight inflation caused by these rising costs.