Oil Prices Soar Past $100 as Middle East Conflict Escalates

Crude oil prices surged past $100 a barrel for the first time since May on Sept. 10, as tensions in the Middle East continued to escalate.

According to Reuters, West Texas Intermediate rose 6.7% to close at $102.48 a barrel that day.

Economist Ray Perryman attributed the increase to the ongoing conflict with Iran and the resulting uncertainty premium in the market.

'There is certainly a degree of overreaction in these numbers, as well as an uncertainty premium as skepticism about various pronouncements grows,' he said.

Perryman also predicted that oil prices will likely settle below current levels due to slowing global demand, but warned that they need to be higher to incentivize investments needed for future growth.