Oil tops $100 per barrel again as Middle East war looks set to drag on

Oil prices, which recently topped $100 a barrel for the first time in weeks, look likely to increase further with unrest in the Middle East unlikely to abate, analysts warned.

Hefty stockpiles among major consumers, alongside reductions in demand, have so far kept oil prices from careering out of control. But, Commerzbank’s chief economist noted, “risks continue to rise.”

Any persistent, significant increase in oil prices — with knock-on consequences for diesel, gasoline, and jet fuel — could drive up inflation ahead of a fall election season that includes midterms in the US, parliamentary elections in Israel, and presidential polls in Brazil.

“The world’s energy crisis risks entering a far more damaging and economically painful phase,” a Reuters columnist noted.