$100 Oil Could Be the October Surprise No One Wanted
Recent developments in the Middle East have heightened concerns about oil prices, potentially leading to a significant increase in the cost of oil. On October 1, Iran launched a missile strike on Israel, causing oil prices to surge by over 2.5%. The situation remains volatile, with Israel poised to retaliate and Iran potentially responding in kind. This escalation could disrupt oil supplies, particularly if Iran were to close the Strait of Hormuz, a critical passage for approximately 21% of the world’s oil supply. Analysts warn that such an action could push oil prices well above $100 per barrel, potentially reaching $150, and gasoline prices in the U.S. might escalate to $5 or even $6 or $7 per gallon. The Biden administration would be highly motivated to avert this situation, particularly during a closely contested presidential election.
