Iran-Backed Disruptions Spark Oil Price Surge Ahead of US Midterms

Motorists are bracing for high petrol prices to continue until at least November's US midterm elections, according to supply chains expert David Leaney.

The average fuel price is likely to exceed $2.50 per litre for petrol and $3 for diesel in the next two months, with Leaney saying it's a 'strat in' situation.

Leaney attributed the high prices to an emboldened Iranian regime 'holding Donald Trump over a barrel', referencing oil supplies and the US President's popularity before the midterm elections.

The price of Brent crude has exceeded $108 per barrel, with the East-West Pipeline in Saudi Arabia damaged by drone attacks.

Leaney said Iran is causing disruption to transport oil through key routes, pushing prices up, while Westpac chief economist Luci Ellis does not expect oil prices to reach $200, but the Commonwealth Bank warns it could surge to $US150 a barrel as an impending oil crunch looms.