The price of oil surged again on Thursday, with Brent crude surpassing $105 per barrel for the first time since May, as markets brace for a prolonged U.S.war with Iran.U.S.
crude oil also jumped sharply and hit $100 per barrel, also its highest level since mid-May.A primary driver of the move in oil prices was President Donald Trump’s comment Wednesday night that he is not looking for a deal with Iran.Trump also said that he did not expect oil prices to fall until “right after” the November midterm elections, despite having said for months that the war would be over quickly.“Right after the election, oil prices are going to be tumbling downward,” Trump told reporters on Wednesday afternoon.
“They’re going to be tumbling down, and we’ll get them down.”Commodities experts warned earlier this week that oil prices as measured by Brent could rise to $120 or even as high as $150 per barrel if the stalemate with Iran continues to drag on.Overnight, Saudi Arabia informed OPEC that its crude oil output plunged to the lowest level since 1990 last month due to renewed hostilities with Iran, according to Bloomberg News.NBC News was not immediately able to confirm that report.
“The move reflects a market still pricing in persistent geopolitical risk, with Persian Gulf tensions showing no credible path to de‑escalation,” said analysts at ING on Thursday.As a result of those rising prices, the national average gas price rose another 5 cents overnight to $4.27.Diesel fuel, which powers everything from farms to trucking to trains, rose 3 cents overnight to $5.97.
Meanwhile, U.S.Treasury bonds continued to sell off, driving their yields higher.
The 10-year Treasury yield, which heavily influences consumer borrowing rates especially for mortgages, touched 4.9%, its highest level since 2023.The 30-year Treasury yield spiked to 3.34%, its highest level since 2007.The move in Treasury yields was driven mostly by the soaring price of energy, which has trigger...