Oil Prices Soar Past $100 a Barrel Amid US-Iran Tensions
Oil prices surged past $100 a barrel for the first time since July as tensions between the US and Iran escalated. The price of Brent crude, the international standard, rose 3% to $100.87 a barrel.
The conflict in the Strait of Hormuz has effectively shut down traffic, with a fifth of the world's oil supply affected. Gasoline prices in the US have increased by 32% from last year, reaching $4.22 per gallon.
Higher fuel prices are cutting into household budgets and indirectly raising prices for goods due to higher shipping costs. The price of diesel has reached an all-time high, with the average price per gallon at $5.94.
The US Federal Reserve is concerned about inflation, which remains above 3%. The central bank aims to hold inflation at a target rate of 2% and may raise interest rates next week.