Oil Prices Soar Above $100 Amid Ongoing Iran Conflict

Oil prices have surged above $100 per barrel for the first time since before Memorial Day, contributing to worsening worries about inflation and increased pressure on the bond market. The price of Brent crude rose 3.5% and briefly touched $105 per barrel, while U.S. oil jumped 3.7% and reached its highest level since May.

The global flow of crude has been clogged due to the ongoing war with Iran, which is expected to continue until after the U.S. midterm elections in November, according to President Donald Trump. The conflict has pushed up the price for a gallon of regular gasoline to an average of nearly $4.28 across the United States, a 34% increase from last year.

The rising oil prices have also had a significant impact on the bond market, with the yield on the 10-year Treasury climbing to 4.91%, a level not seen since autumn 2023. This has made investors less willing to pay high prices for stocks and other investments that carry more risk than bonds.