US Oil Prices Surge to $100 Per Barrel Amid Iran Tensions
Oil prices have surged to their highest level since before Memorial Day, reaching $100 per barrel for US crude and over $105 for Brent crude. The rise in oil prices has been steady since early July, when hopes faded of a deal between the US and Iran to fully reopen the Strait of Hormuz and allow oil tankers to exit the Persian Gulf freely.
President Donald Trump stated on Wednesday that oil prices are unlikely to decrease until after the US midterm elections in November. The jump in oil prices has caused a significant increase in gasoline prices, with an average price of nearly $4.28 per gallon across the United States, up 34% from last year.
The rising inflation rates have pushed the wholesale level to 5.4%, and retailers may pass on these increases to consumers. The Federal Reserve is expected to raise interest rates at its meeting next week, with a 70% chance of a rate hike, despite Trump's lobbying for lower rates.