Oil Heads to $100 as U.S.-Iran Strikes Keep Markets on Edge

Oil prices extended their rally on Monday, pushing Brent crude closer to $100 a barrel, as fresh military exchanges between the United States and Iran sustained fears of supply disruptions. The latest round of strikes has kept the "geopolitical risk premium"—the extra cost built into oil prices due to potential conflict—at elevated levels. Traders are now bracing for possible disruptions in the Middle East, a region that supplies about a third of the world’s crude. The move comes just ahead of the U.S. Labor Day holiday, when American gasoline prices are already at a record high for this time of year. Higher oil costs typically translate into more expensive fuel for drivers, adding pressure on consumers already dealing with inflation. Analysts say the market remains highly sensitive to any further escalation. If the conflict widens, Brent could quickly test the $100 mark—a level not seen in months. For now, all eyes are on Washington and Tehran for any sign of de-escalation, but with no pause in strikes, the upward pressure on oil shows no sign of easing.