Oil Prices Soar as US-Iran Tensions Escalate

Oil prices have surged to one-month highs as tensions between the US and Iran escalate. The conflict has pushed the price of crude oil above a key resistance zone, and analysts believe it may break through to reach $90, $93.50, or even $100.

The deal between the US and Venezuela could provide some relief in the long term by increasing supply, but it won't ease near-term oil prices as output will take years to ramp up. The deal will strengthen America's energy security and reduce its vulnerability to future supply shocks.

Oil is largely demand-inelastic, meaning buying stays strong when prices go up or down. Demand only gets disrupted when prices stay elevated for a significant period. Unless the Strait of Hormuz re-opens, oil prices may not fall back meaningfully in the near term.