US Business Activity Declines Amid Inflation Fears Linked to Mideast Conflict

According to the International Desk of Webangah News Agency, Reuters reported that commercial activities in the United States experienced a decline in October, potentially leading to persistent high inflation in the upcoming months. S&P Global announced on Friday that its preliminary U.S. Composite Purchasing Managers’ Index, which tracks manufacturing and services sectors, fell to 57.6 units this month. This index had reached a five-year high of 58.4 units in September.

Economists have cautioned that the inflationary consequences stemming from prolonged conflicts in the Middle East and the ongoing war against Iran are likely to result in reduced consumer spending in the current quarter. This comes as the U.S. Department of Energy announced the authorization to withdraw 400,000 barrels of crude oil from strategic reserves to address supply disruptions in Louisiana.

U.S. crude oil inventories in the Strategic Petroleum Reserve have reportedly fallen to 282.7 million barrels, marking the lowest level since October 1982. These recent drawdowns are part of a directive from U.S. President Donald Trump to release 172 million barrels of oil from these reserves, according to media reports.

These developments follow the closure of the Strait of Hormuz and subsequent disruptions to the global oil supply, which have driven international oil prices to surge significantly, now standing at approximately $117 per barrel.