(TheLastPatriotNews.com) – In a concerning development that will likely hurt Americans financially, US crude oil prices escalated significantly on Monday, surpassing $80 per barrel.
This surge occurred as the US Defense Department increased its military presence in the Middle East due to the anticipated threat of an Iranian attack on Israel.
Defense Secretary Lloyd Austin commanded the hastened deployment of a carrier strike group, which includes F-35 warplanes, to the region.
Additionally, he directed a guided-missile submarine to move to the Middle East, CNBC reports.
In response, Israel heightened its military readiness, according to a source familiar with the situation who spoke to The Wall Street Journal.
On Monday, closing energy prices saw West Texas Intermediate crude for the September contract at $80.06 per barrel, marking an increase of $3.22, or 4.19%.
So far this year, US crude oil has appreciated by 11.7%.
The Brent crude October contract ended at $82.30 per barrel, up $2.64, or 3.31%. To date, this global benchmark has advanced by 6.8%.
RBOB Gasoline for the September contract increased to $2.44 per gallon, rising over 5 cents, or 2.2%. Year to date, gasoline prices have surged approximately 16.2%.
Natural Gas for the September contract was up over 4 cents, or 2.15%, closing at $2.18 per thousand cubic feet. However, it has seen a nearly 13% decline since the beginning of the year.
Tensions have been escalating as Israel prepares for potential strikes from Iran and its proxy Hezbollah, following the assassination of a Hamas leader in Tehran.
Israeli intelligence indicates that Iran might retaliate directly within days, according to two sources who spoke to Axios.
In financial circles, the potential for increased geopolitical unrest has influenced investment strategies.
“We see allocations to oil and gold as the main means to add some protection to portfolios against a further escalation in geopolitical tensions,” UBS analysts advised clients in a research note on Monday.
Despite OPEC’s recent adjustment, lowering its global oil demand growth forecast by 135,000 barrels per day due to reduced consumption in China, US crude oil prices remain elevated.
“The oil markets reacted strongly to the increased geopolitical risk even as OPEC has shown some concern about its demand growth,” commented Phil Flynn, a senior market analyst at the Price Futures Group. He noted that the market is still poised for a deficit as inventory levels decrease.
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