Oil rises to $104 after the U.S. says 'no' to Iran's proposal

WHAT HAPPENED

Brent reached nearly $104 per barrel and WTI at $92, almost 11% more than a month ago. The rise came after the U.S. rejected an Iranian proposal to reopen the Strait of Hormuz, through which about one-fifth of the world's oil passes.

WHY IT MATTERS

As the conflict continues, fears grow that this route could close and oil could be in short supply. This first raises the cost of gasoline, diesel, flights, and freight; later it may increase the cost of transporting food and goods. The impact does not arrive equally or at the same time in all countries.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, expensive oil can pressure the profits of airlines, transporters, and farmers, while benefiting crude producers. For any household, the practical signal is potentially higher fuel and transportation costs, although not immediately.