Brent Crude Tops $100 as Tensions in Middle East Escalate
Oil prices have surged to six-week highs as tensions in the Middle East escalate. Brent crude traded at $101.09 on Wednesday morning, up 3.2% on the day and above $100 for the first time since early August. The sharp rise has prompted prediction market traders to shift their bets.
The trigger for the price increase was a weekend of escalating violence between Saudi officials and Houthi rebels, followed by US Central Command's destruction of five Iranian oil tankers in response to Iranian ballistic missile attacks on an American warship.
On Myriad, a prediction market owned by Dastan, the odds of crude reaching $120 have risen to 56.5%, while the chances of it falling to $55 sit at just 1% for this month. Polymarket, another platform, shows similar trends, with WTI touching $100 in September priced at 59% and dropping to $85 sitting at 39%.
Pump prices are following suit, with diesel hitting a record high of $5.94 a gallon on Wednesday and gasoline averaging $4.22 per gallon. This comes as Republicans struggle to campaign on affordability ahead of the midterm elections.