Crude oil is back above $100 a barrel. And that’s a number worth paying attention to.
As tensions in West Asia escalates, Brent crude has climbed to around $100.07 a barrel, while U.S. crude is trading near $94.73.
I think that this matters beyond the oil market.
Because when oil prices rise, the impact can slowly reach all of us from petrol and diesel prices to transportation, manufacturing, inflation, and even the cost of everyday goods leading to overall increase in monthly expenditure for households with the income still being the same.
For businesses and economies that depend heavily on imported oil, a prolonged rise could mean higher costs and more pressure on consumers.
The bigger question now is: How high can oil prices go if the conflict continues to escalate?
One thing is certain developments in West Asia are no longer just a geopolitical story. They can quickly become an economic story too.
