Due to market concerns that conflicts in the Middle East could escalate, and reports that the United States is planning to resume strikes against Iran, crude oil prices rose on Thursday.
Brent crude oil futures rose 1.71% to $110.67 per barrel; US West Texas Intermediate (WTI) crude oil ($BJWKEEP_00001_) rose 1.42% to $98.53 per barrel.
The New York Times cited unnamed U.S. officials as reporting that the U.S. and Israeli militaries have devised a new round of strikes against Iran, with the timing set for after the mid-month elections. The newspaper stated that the planning for these "brief but intense" operations is underway.
The United States has also ordered non-emergency government employees and their families to leave Saudi Arabia.
A State Department spokesman, Tommy Pigott, stated on X that this order only applies to Saudi Arabia, and mentioned that attacks by Houthi forces supported by Iran on civilian targets are increasing. Previously, there were reports that the United States had instructed some staff in the broader Gulf region to evacuate.
However, Aptus Capital Advisors, the stock and portfolio manager, and David Wagner, the person in charge, stated that the economic impact of rising oil prices may not be as severe as it has been in the past few decades, because consumers are now less vulnerable to energy shocks.
Wagner said, "Today's oil price of $100 is very different from the $100 oil prices 20 or even 30 years ago." He pointed out that when adjusted for inflation, crude oil prices are still far below their historical highs.
He cited U.S. government data stating that ten years ago, gasoline accounted for about 5% of Americans' disposable income, while now it is only about half. This indicates that households may be better able to afford higher energy costs.
He said, "I think we can hold this umbrella over our heads... to shield ourselves from this oil price storm."
—— CNBC's Anniek Bao has contributed to this article.
