Oil prices have risen sharply due to escalating tensions in the Middle East and the United Arab Emirates' recent decision to exit OPEC and OPEC+. Brent crude reached $111.13 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 3.68% to $99.92 per barrel, marking its highest level since April. This surge reflects growing concerns over supply disruptions, particularly through the crucial Strait of Hormuz, which has been affected by the ongoing Iran conflict. The UAE's departure from OPEC, where it was the third-largest producer, signals potential instability within the cartel, raising fears of unpredictable oil prices in the future. As oil prices climb, inflation expectations are also rising, prompting increases in bond yields and impacting stock markets negatively. The U.S. Federal Reserve and other central banks are closely monitoring these developments, as higher energy costs could influence interest rate policies moving forward. Analysts anticipate that oil prices will remain volatile, fluctuating based on geopolitical developments and economic indicators.