US-Iran Conflict Drives Oil Prices to Record High
The escalating conflict between the US and Iran has sent oil prices soaring above $100 per barrel for the first time since July. The surge in oil prices is a direct result of the recent attacks on US and Iranian ships in the Strait of Hormuz, which have escalated tensions between the two nations.
Iran claimed to have attacked two US ships and eight tankers near the strategic waterway in response to the US sinking five Iranian oil tankers. The Pentagon confirmed that the tanker strikes were retaliation for Iran's first confirmed attacks on US Navy ships during the six-month war, which 'failed' but were described as close calls.
The attacks sent shockwaves through the global energy market, with oil prices surging and gas prices in the US hitting a record $4.22 per gallon. Diesel fuel reached an all-time high of $5.94 per gallon, while some stations in California maxed out diesel at $9.99 per gallon.
President Donald Trump predicted that war would end immediately after the election, sending oil prices 'tumbling downward', but top White House advisers have privately discussed with him that the Iran war could drag on through the remainder of his term.