Oil Surge to $100 Triggers Alarm Bells for US Agriculture

Oil prices near $100 per barrel have U.S. agriculture on high alert as interest rates and global risks rise.

The price of Brent crude was trading at around $100 per barrel on Tuesday, while the benchmark 10-year U.S. Treasury yield hovered at 4.9%.

Investors were assessing comments from a senior Iranian official indicating Tehran could reopen the Strait of Hormuz within seven days if Washington eases pressure.

The geopolitical situation is not the only concern for farmers, as higher oil prices can extend beyond the cost of filling a tractor or combine to include energy embedded throughout agricultural production and distribution.