Oil prices surpassed $100 per barrel on Thursday amid escalated conflict in the Middle East, intensifying pressure on consumers already feeling the strain from earlier increases linked to the ongoing war involving Iran. The rise in oil costs reflects renewed military confrontations and strikes that have disrupted global oil supplies in the region.

Brent crude, the international benchmark, last traded above the $100 mark in May, following a brief period of lower prices in June when hostility between the United States and Iran had eased. The recent surge has triggered concerns among businesses reliant on fuel, including producers and retailers of fresh food and school supplies, as transportation and shipping costs rise. Industry experts suggest these increased expenses are likely to be passed on to consumers.

Miguel Gomez, director of Cornell University’s Food Industry Management Program, noted that businesses tend to raise prices quickly when input costs climb, yet reductions in prices tend to occur more slowly when costs fall. This dynamic indicates consumers might face sustained higher prices even if oil costs eventually decline.

Regional instability, particularly around the Strait of Hormuz, has added volatility to crude oil markets, raising gasoline prices and potentially causing further increases as the summer driving season continues. As of Thursday, the average price for regular gasoline in the United States reached $4.09 per gallon, marking a 15-cent rise compared to the previous week, with most states now witnessing pump prices exceeding $4.

Pavel Molchanov, an investment strategy analyst at Raymond James, emphasized that due to supply chain lags in the oil industry, gasoline prices are expected to continue climbing into the near term. However, he also pointed out that futures contracts for oil deliveries later this year and into 2027 are priced lower, indicating the possibility of price declines once active military operations subside.

Despite rising fuel costs, consumer demand for gasoline has remained resilient. Data from the U.S. Energy Information Administration showed that gasoline consumption increased by 1%, reaching 8.9 million barrels per day last week, suggesting that Americans have largely continued their driving habits despite higher prices.

Overall, the ongoing Middle East conflict has reintroduced significant uncertainty into the energy markets, contributing to elevated costs that are filtering through to everyday consumer expenses in the United States and potentially beyond.