Oil Prices Soar to Highest Level Since May Amid Ongoing Conflict with Iran
Oil prices have surged to their highest level in months, hitting $105 per barrel for Brent crude and $100 per barrel for U.S. crude. This increase has caused stock markets across the globe to slump, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average down 153 points.
The jump in oil prices is attributed to the ongoing conflict between the U.S. and Iran, which has disrupted the global flow of crude. President Donald Trump stated that oil prices will not decrease until after the U.S. midterm elections in November.
The rise in oil prices has also pushed up the price of gasoline, with an average gallon now costing nearly $4.28 across the United States. This increase is expected to have a ripple effect on inflation, which hit 5.4% at the wholesale level last month.
Markets are expecting the Federal Reserve to raise interest rates in response to the increasing inflationary pressures. The European Central Bank has already raised its interest rates, citing the conflict in the Middle East as a factor driving up inflation.