With air strikes on Iran continuing and instability across the Middle East, oil prices have soared. 

West Texas Intermediate (WTI)  climbed to US$81.01 on Thursday with Brent Crude climbing to US$85.41 a barrel, the highest it has been since 2024.

While oil prices are rising, the Dow Jones is plunging, falling by 784 points on Thursday. Word also comes that Iran attacked an oil tanker, and now the Strait of Hormuz is for all intents and purposes closed.

It is still early days, but if military actions were to persist for weeks into months, it would have an impact upon inflation across the world and certainly a negative impact on tourism in the Caribbean.

“The situation is highly uncertain, but if WTI remains near $80 for a few months before drifting down over the rest of the year, then the peak direct impact on. Inflation may be only about 0.3,” said Deputy Chief, North America Economist at Capital Economics, Stephen Brown.

The Prime Minister of Israel, Benjamin Netanyahu, said he does not expect the conflict to be protracted and Iran should fall in a few days with the Islamic regime totally destroyed.

Oil prices have jumped up by 20 per cent in a week. This will have an impact on transportation costs and manufacturing inputs, likely leading to the Fed delaying cutting its rate.