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Oil Prices Rise After Conflicts In The Middle East Heat Up

The oil prices have continued to surge in the last few weeks, and have hit the highest point since November 2014. The price of a barrel of crude oil has reached $71 because of increasing turbulence in the Middle East. One of these ongoing conflicts is the Saudi Arabian-led intervention in Yemen, which flared up in April, as seen in the big surge in the chart.  Moreover, the increase of uncertainty regarding the position of Iran, and the escalating conflict between Israel and Syria, have caused the uncertainty to grow in the last weeks. According to the Federal Reserve Bank of San Francisco, high oil prices can lead to higher gasoline prices on a microlevel, but can lead to inflation and a reduction of economic growth on a macro level.

Figure from NY Times

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