On Thursday, Brent crude futures increased by 1.71% to $110.67 a barrel, while U.S. West Texas Intermediate crude rose 1.42% to $98.53. This price rise is attributed to reports that the U.S. and Israeli militaries are preparing for renewed strikes against Iran following the upcoming midterm elections.
The New York Times cited unnamed U.S. officials indicating that plans for a 'short but intensive' operation are underway. Additionally, the U.S. State Department has ordered non-emergency government employees and their families to leave Saudi Arabia due to rising attacks by Iran-aligned Houthis on civilian targets.
Despite these developments, David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, noted that the economic impact of high oil prices may be less severe than in the past.
He pointed out that while gasoline prices were a significant portion of disposable income a decade ago, they now account for about half that percentage, suggesting that consumers are better equipped to handle elevated energy costs. Wagner emphasized that current oil prices, even at $100, are not as impactful as they were 20 or 30 years ago, as they remain below inflation-adjusted historical highs