$97: Oil rises due to new escalation between the U.S. and Iran
WHAT HAPPENED
Brent oil rose to $97.39 per barrel, its highest level in weeks, following new attacks between the U.S. and Iran and the Iranian threat to restrict the passage of ships near the Strait of Hormuz.
WHY IT MATTERS
About one-fifth of the world's oil passes through Hormuz. If ships face more risk, buyers fear less crude will arrive and pay more. First, airline, shipping, and transport costs rise; then, gasoline and food.
AND FOR YOUR PORTFOLIO
For the wallet, more expensive oil can raise gasoline prices and the cost of transported products, although the effect usually takes days or weeks. In a diversified portfolio, the impact can vary: transportation companies face higher costs, while oil producers may benefit from higher prices.
💬 TELL IT LIKE THIS
“When a route carrying one-fifth of the world's oil becomes dangerous, the fear of shortages raises prices from fuel to food.”