US-Iran Conflict Pushes Global Oil Prices Above $100

Global crude oil prices have surpassed $100 a barrel following the collapse of a temporary ceasefire and the intensification of a military conflict between the United States and Iran. The conflict, which began on February 28 with a joint U.S. and Israeli campaign, has evolved into traded military blows over control of the Strait of Hormuz. Iran has retaliated with strikes on shipping and coordinated with Houthi allies in Yemen to obstruct tanker traffic in the Red Sea.

In the United States, gasoline prices have risen above $4 per gallon, with the national average reaching $4.11. Analysts warn that depleted crude oil and fuel inventories make this surge more precarious than previous price spikes seen earlier this spring.

Australia is experiencing similar price increases for unleaded and diesel fuel. The National Roads and Motorists' Association reported rising national average prices, while economists predict unleaded fuel may exceed $2 per litre as government fuel excise discounts expire on August 2. These costs are creating inflationary pressures that may lead the Reserve Bank of Australia to increase interest rates during its August 11 meeting to curb inflation despite a slowing economy. Additional supply pressures include Ukrainian attacks on Russian energy infrastructure and Houthi blockades of Saudi Arabian oil.