$100 Oil Surges Amid Renewed Iran Fighting

Oil prices have surged to levels not seen since early July, surpassing $100 a barrel for global benchmark Brent crude and $95 a barrel for West Texas Intermediate. This is the highest level since an interim peace deal was reached earlier this summer.

The surge comes after the United States destroyed several Iranian oil tankers over the weekend in response to Tehran's attempted attacks on American warships in the region, as well as energy facilities in Saudi Arabia being attacked by Iran-allied militant groups. Energy prices were already under pressure before the recent escalation due to traffic through the Strait of Hormuz remaining below pre-war levels, cutting off a significant portion of the global oil and natural gas supply.

The war in Iran isn't the only factor propping up energy prices. Russia has also cut back on fuel production and restricted exports after repeated attacks on its refineries in its war with Ukraine. Higher oil prices have fed into climbing costs at the pump for fuels like gasoline and diesel, a painful pinch point for American consumers.

The average cost for gasoline in the U.S. is over $4 a gallon, and over $1 more expensive than it was a year ago, according to AAA. Diesel prices are nearing $6 a gallon, already surpassing an all-time high and adding another pressure point on inflation. Americans have already spent an extra $101 billion on gasoline and diesel since the war started.