Trump Rejection Sends Oil Prices Soaring Above $107 Amid Iran Conflict

Oil prices surged above $107 a barrel on Monday after President Trump rejected an Iranian peace proposal and indicated he would resume US strikes against Iran after the November midterms.

The move sent shockwaves through global markets, with Brent crude futures jumping 2.6% to $107.02 a barrel and West Texas Intermediate rising 2.7% to $94.91 by 12:15 p.m. ET.

National average gasoline prices hit $4.48 a gallon, far above the pre-war average of $2.98 in February and $3.13 last September, according to AAA.

Economists warn that higher energy costs could bleed through to other sectors, raising prices for food and apparel among other goods.