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U.S. Crude Oil Prices Surpass $100 Per Barrel as Iran War Escalates

U.S. crude oil prices rose past the $100 per barrel mark on Thursday, reaching levels not seen in more than three months. The surge is driven by escalating fighting between Washington and Tehran, which has resulted in the destruction of at least eight Iranian tankers and several attacks on American warships. Iran-backed Houthi allies in Yemen have also attacked energy facilities in Saudi Arabia, further broadening the war's scope. The rise in oil prices has contributed to increased inflation pressures and a surge in bond yields. The 10-year Treasury yield reached its highest level since October 2023, while 30-year mortgage rates hit a 15-month high. In response to these market shifts, the administration announced that the Treasury Department would buy back up to $6 billion in bonds, ultimately purchasing roughly $5.2 billion. While President Trump said the war would end shortly after the midterm elections and promised a return to cheap energy, market analysts suggest a prolonged conflict may persist. S&P Global Energy reported that Middle East oil production may not return to pre-war levels by the end of next year.

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