Oil Prices Surge Past $100 a Barrel as US-Iran Conflict Escalates
WASHINGTON (AP) — Oil prices soared Sunday, breaching the $100-a-barrel mark for the first time since 2022, fueled by escalating tensions following a week of conflict between the United States and Iran. The price of West Texas Intermediate (WTI) crude climbed to nearly $110 a barrel, while Brent crude, the global benchmark, exceeded $105.
The surge reflects growing concerns about potential disruptions to supply through the Strait of Hormuz, a critical waterway for global oil transport, handling roughly 20% of the world’s crude. Trading Economics reported that Brent prices jumped as much as 15% after leading Middle Eastern producers curtailed production due to the closure of the strait.
U.S. President Donald Trump downplayed the impact of rising oil prices, calling it “a small price to pay” for security and peace, both for the United States and the world. In a post on TruthSocial, Trump stated that prices would “fall rapidly” once the perceived nuclear threat from Iran is neutralized, adding, “ONLY FOOLS WOULD THINK DIFFERENT!” He initially described the increase as “a minor inconvenience” in an interview with ABC News.
The rising cost of oil is already being felt by American consumers. The national average price of gasoline has increased by 16% – 47 cents – in the past week, reaching $3.45 per gallon.
Despite the escalating conflict, U.S. Energy Secretary Chris Wright assured CNN that the U.S. has no plans to target Iran’s oil industry or energy infrastructure, distancing the U.S. from recent Israeli strikes against fuel depots within Iranian territory.
Wall Street also reacted negatively to the developments, with the S&P 500, Nasdaq Composite, and Dow Jones indexes all experiencing a decline of approximately 1.5%.
The situation remains fluid, and further escalation could lead to even more significant disruptions in the global oil market. The conflict’s impact extends beyond energy prices, raising broader concerns about regional stability and the potential for wider geopolitical ramifications.
(20 Minutos reported initial details of the price surge and Trump’s comments.)
