Global oil surges above US$100 a barrel as US and Iran launch new attacks

NEW YORK (AP) – Global oil prices shot past US$100 a barrel on Wednesday as fighting between the United States and Iran escalated, threatening to increase costs for consumers and businesses worldwide.

Brent crude, the international standard, climbed into triple digits after attacks on oil facilities and ships in the Middle East that could further debilitate an already weakened supply chain – and continued to hover just above the US$100 threshold as of midday trading in the US. That last time prices were that high was in July.

The latest developments in the war, both prospects of peace and renewed hostilities, have caused market whiplash before. Oil returning to the US$100 mark raises concern because experts have warned that a prolonged period of steep prices would worsen the now over six-month-long conflict's economic fallout. Crude is the main ingredient for everyday fuel like gasoline and diesel – which are also seeing a renewed spike in prices – and higher energy costs overall trickle down to just about every part of the supply chain, from groceries to clothing, cosmetics and more.