Oil Prices Soar Above $100 as US-Iran Conflict Intensifies

Oil prices have risen above $100 per barrel as a result of the ongoing conflict between the United States and Iran, as well as attacks by Yemen's Houthi rebels on Saudi Arabia's energy infrastructure. This has put pressure on US politics ahead of the midterms, with higher fuel costs threatening the economy.

According to John King, founder of Q Advisory, the latest surge in oil prices is driven more heavily by geopolitical risk rather than physical supply disruption. He estimates that a risk premium of $15 to $16 per barrel has been added to the market due to concerns over further attacks on tankers and damage to major Gulf production facilities.

The US is less vulnerable to an oil shock than it was during the 1970s, thanks to high domestic production. However, American consumers are still affected by globally determined crude prices, and the country's Strategic Petroleum Reserve has fallen to its lowest level since 1982.