Oil Prices Soar to Highest Levels Since May Amid Iran War Disruptions

Oil prices have surged to their highest levels since May due to disruptions in global crude supply caused by the war with Iran, dragging Wall Street stocks lower and fueling inflation fears.

The price of Brent crude, the international standard, climbed 6.3% on Thursday and briefly topped $108 per barrel for the first time since May before settling at $107.63.

This sharp increase has led to a significant jump in gasoline prices, with the average cost of regular gas reaching nearly $4.28 across the United States, according to AAA, up 34% from last year.

The rising oil prices have also had a ripple effect on inflation, with wholesale prices accelerating to 5.4% last month from 4.8% in July, and retailers may soon pass these increases onto consumers.

As a result, investors are now more likely to see a rate hike by the Federal Reserve next week, with a roughly 73% probability, up from 61% the previous day.