Oil Prices Soar Amid Escalating US-Iran Conflict

Last week's developments in the US-Iran conflict have escalated tensions in the Middle East, increasing the risk of higher oil prices.

The Strait of Hormuz remains closed following reported incidents involving Saudi oil tankers, and Brent crude briefly returned to $100 per barrel before retreating to around $90 per barrel.

While some may argue that a global economy can tolerate high oil prices, the key issue is whether escalating geopolitical tensions push prices materially higher.

The Federal Reserve's response will be crucial in determining the market's reaction to these developments.