US-Iran Tensions Send Oil Prices Soaring Above $100
Oil prices surged past $100 a barrel on Wednesday as tensions between the US and Iran escalated, threatening to further strain global supplies. Brent crude, the international benchmark, settled at $101.21 per barrel after attacks on oil facilities and ships in the Middle East. The US benchmark crude price was close behind, settling at $96.05 per barrel.
The latest developments in the war have caused market whiplash, with prices fluctuating throughout the conflict. However, experts warn that a prolonged period of steep prices could worsen the economic fallout of the war.
Higher energy costs trickle down to every part of the supply chain, from groceries and clothing to cosmetics. 'Brent breaking above $100 is a major psychological milestone for markets,' said Lukman Otunuga, market research head at global broker FXTM. 'The bigger concern is what this means for inflation.'
U.S. President Donald Trump stated that oil prices likely won't come down until after November's midterm elections. The ongoing conflict has already caused significant price increases, with the average US gasoline price jumping 42% to $4.22 per gallon and diesel setting a new record at $5.94 per gallon.