US-Iran Tensions Spark Oil Price Surge Above $100 a Barrel

Oil prices have surged above $100 a barrel for the first time since July as tensions between the US and Iran escalate. The latest developments in the war have caused market whiplash, with oil prices fluctuating considerably over the last six months.

Brent crude, the international standard, settled at $101.21 a barrel by the end of the day's trading, while US benchmark crude was close behind at $96.05 a barrel. The spike in oil prices is likely to increase costs for consumers and businesses worldwide, with gasoline prices also jumping.

According to Lukman Otunuga, market research head at global broker FXTM, 'Brent breaking above $100 is a major psychological milestone for markets, but the bigger concern is what this means for inflation.'