Market News
Oil surges above $100 a barrel as U.S. and Iran launch new attacks, while gasoline prices also jump - A.P
NEW YORK — NEW YORK — Oil prices shot past US$100 a barrel Wednesday as fighting between the U.S. and Iran escalated, threatening to increase costs for consumers and businesses worldwide.
Brent crude, the international standard, climbed into triple digits for the first time since July and settled at $101.21 a barrel. U.S. benchmark crude was close behind, finishing at $96.05 a barrel a day after attacks on oil facilities and ships in the Middle East raised the risk of further disruptions to global supplies already constrained by war.
New developments in the Middle East, prospects of both peace and renewed hostilities, have caused market whiplash throughout the conflict’s more than six months. Oil returning to the $100 mark raises concern because experts have warned that a prolonged period of steep prices would worsen the economic fallout.
Crude is the main ingredient of widely used fuels like gasoline and diesel, both of which have become more expensive in recent weeks. Higher energy prices ripple through the global economy, adding to the cost of everything from producing and transporting food, medicines and household goods to daily commutes and air travel.
“Brent breaking above $100 is a major psychological milestone for markets, but the bigger concern is what this means for inflation,” Lukman Otunuga, market research head at global broker FXTM, noted.
Political ramifications could pile up in the meantime. U.S. President Donald Trump, who has repeatedly tried to downplay the war he co-launched, said Wednesday that oil prices likely won’t come down until after November’s midterm elections.
