Crude oil is trading at $90 U.S. a barrel on July 31 as hostilities in the Middle East continue to drive prices higher.
Brent crude oil, the international standard, is trading at $90.18 U.S. per barrel, while West Texas Intermediate (WTI) crude oil, the American benchmark, is at $85 U.S. a barrel.
Oil prices had been under $70 U.S. a barrel to start July amid signs of a lasting ceasefire between the U.S. and Iran.
But that ceasefire proved short lived and crude prices are again marching higher as the U.S. and Iran continue to fire missiles at one another.
However, crude prices are off their highs for the month. A week ago, Brent crude oil had been trading above $100 U.S. a barrel for the first time since early May of this year.
Analysts say that oil prices are likely to remain elevated as long as the key shipping routes of the Strait of Hormuz and the Red Sea remain closed due to the ongoing fighting.
While the U.S. and Iran have each indicated that they might be open to renewing peace talks, so far, no new talks between the sides have been scheduled.
The rise in crude oil prices continues to impact inflation and retail gas prices in the U.S.
Economic data released on July 30 showed that the annualized inflation rate in the U.S. is at 3.7%, well above the Federal Reserve’s 2% target.
Gas prices at the pump in the U.S. are back above $4 U.S. a gallon nationwide as crude prices climb higher.
