$100 Oil: Escalating Tensions Threaten Economic Fallout
Oil prices surged above $100 per barrel on Wednesday due to escalating tensions between the US and Iran, raising concerns about inflation and economic fallout. The price of Brent crude, the international standard, climbed into triple digits after attacks on oil facilities and ships in the Middle East.
The latest developments in the war have caused market whiplash, with prices fluctuating considerably over the last six months. Oil costs cooled earlier this summer but have since renewed their climb, albeit with some volatility.
Experts warn that a prolonged period of steep prices would worsen the conflict's economic fallout, particularly for consumers and businesses worldwide. Higher energy costs trickle down to every part of the supply chain, from groceries to clothing, cosmetics, and more.
The US President Donald Trump said oil prices likely won't come down until after November's midterm elections, while analysts at Bank of America increased their oil price forecast for the second half of the year to $83 a barrel due to persistent disruptions to Hormuz. If attacks continue, prices could reach $95 to $120 a barrel.