Oil Prices Surge Past $100 Amid Iran Tensions
Oil prices have surged past $100 per barrel for the first time since before Memorial Day, fueling worries about inflation and pressuring stocks on Wall Street. The price of Brent crude, the international standard, rose 5.9% to above $105 per barrel, while U.S. crude climbed 6.1% to top the $100 level.
The jump in oil prices has been steady since early July, when hopes for a deal between the U.S. and Iran to fully reopen the Strait of Hormuz began to fade. President Donald Trump said on Wednesday that oil prices won't come down until after the U.S. midterm elections in November.
As a result, gas prices have risen sharply, with an average price of nearly $4.28 per gallon across the United States, up 34% from last year. This has not only hit consumers hard at the pump but also driven up costs for goods that move by truck to store shelves.
The U.S. wholesale inflation rate accelerated to 5.4% in August, from 4.8% in July, according to a report on Thursday. The Federal Reserve may respond by raising interest rates, which could slow the economy and curb price growth.