Oil prices soared to just under $109 a barrel late Thursday afternoon, an increase of about $8 from the previous day. This surge is attributed to market perceptions of a prolonged conflict involving the US, Israel, and Iran, particularly given former President Donald Trump's inability to de-escalate US involvement and Iran's steadfast refusal to cede control of the Strait of Hormuz. These geopolitical tensions are casting a negative outlook on future energy prices.
The impact of these rising oil prices is already evident at American gasoline pumps, where the average cost for regular unleaded has reached approximately $4.28 per gallon. Furthermore, the elevated oil prices have exacerbated existing market concerns regarding Scott Bessent's controversial buyback strategy, pushing US Treasury yields to multi-year highs. The broader stock market has also felt the pressure, with the S&P 500 experiencing its fourth consecutive day of losses, marking its longest losing streak since June.
