Oil Prices Soar to Highest Levels Since May Amid Ongoing Geopolitical Tensions

Oil prices surged to their highest levels since May on Thursday, with Brent crude briefly reaching $108 per barrel and US crude oil jumping above $102. This marks a significant increase in prices, with both Brent and WTI rising by more than 75% since the start of the year.

The rise in oil prices is attributed to ongoing geopolitical tensions, particularly in the Persian Gulf region. Analysts at ING stated that the market is still pricing in persistent risk, with no credible path to de-escalation. This has led to a significant increase in national average gas prices, which rose by 5 cents overnight to $4.27 per gallon.

The Trump administration's comments on Iran have also contributed to the rise in oil prices. President Donald Trump stated that he does not expect oil prices to fall until 'right after' the November midterm elections. Commodities experts warn that oil prices could reach as high as $120 or even $150 per barrel if the stalemate with Iran drags on.

The crisis in global crude oil supplies is also a concern, with many nations agreeing to release 400 million barrels earlier this year. The US Strategic Petroleum Reserve is at its lowest level since the 1980s, and Saudi Arabia's crude oil output has plummeted due to renewed hostilities with Iran.