Oil Tops $100 as Middle East Tensions Rise

Oil prices surged past $100 a barrel as Middle East tensions intensified, with attacks by Houthi rebels and Iran targeting regional routes such as the Strait of Hormuz and the Red Sea chokepoints. While OPEC signaled potential supply boosts to ease the strain, markets remain volatile and prices could climb further if disruptions persist, potentially fueling inflation ahead of upcoming elections. U.S. and regional gasoline prices are rising, with national averages near or above $4 per gallon in many areas, and diesel costs increasing as distribution costs feed consumer prices. Analysts note the rally may reflect mispricing catching up with fundamentals, though risk remains if conflicts broaden or key supply lines are impaired. High stockpiles and demand moderations could eventually cap prices, but near-term trajectories remain uncertain amid ongoing tensions.