Can High Oil Prices Trigger More Rate Hikes?

Brent crude prices have surged to around $108-$110 a barrel, driven by tightening supplies, rising winter demand in the Northern Hemisphere, and renewed threats to shipping routes from Houthi militants. Against this backdrop, Jonathan Barratt, Chief Investment Officer at ETO Markets, and William Lee, Chief Economist at Global Economic Advisors, examine whether persistent energy-driven inflation could force central banks to keep interest rates higher for longer, posing risks to broader financial markets. They also discuss why the AI-led rally continues to defy traditional risk assessments and how elevated oil prices could accelerate India's efforts to reduce its dependence on Middle Eastern crude by investing in alternative energy and infrastructure.