Oil Prices Soar to Highest Level Since May Amid US-Iran Tensions

Oil prices continued to rise on Thursday, reaching their highest level since May as tensions between the US and Iran persisted. Brent crude, the international standard, climbed 3.5% to briefly top $105 per barrel for the first time since the summer.

The surge in oil prices has been ongoing since early July, when hopes faded of a deal to fully reopen the Strait of Hormuz and allow oil tankers to freely exit the Persian Gulf. President Donald Trump said on Wednesday that oil prices likely won't come down until after the US midterm elections in November.

The jump in oil prices has had a ripple effect on the global economy, pushing the price for a gallon of regular gasoline to an average of nearly $4.28 across the United States, up 34% from last year. This increase is not only affecting consumers at the pump but also through higher prices for products that move by truck to store shelves.

The rise in oil prices has also worsened worries about inflation and cranked up pressure within the bond market, helping to send stocks lower on Wall Street. The S&P 500 fell 0.6% and is on track for a fourth straight loss, though it's not far from its all-time high set last month.