Oil Prices Rise Above $120 Amid Iran Blockade Concerns

Why it matters locally: Higher oil prices could affect Texas energy producers and consumers. Texas, a major oil and natural gas producer, may see increased production costs offset by higher commodity prices, while drivers and businesses across the state could face elevated fuel expenses.

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Oil prices increased above $120 a barrel Monday, according to the BBC, amid reports concerning the blockade affecting Iran. Market analysts cited geopolitical tensions as a factor in the price surge. CNN reported that former President Trump views the blockade as a means to bring Iran back to negotiations. Al Jazeera reported that Iranian officials threatened unspecified “practical” actions in response to the continued blockade. CNBC reported that former President Trump posted a digitally generated image of himself. The Telegraph reported Monday that the Pentagon is preparing potential military actions to address the situation in the Strait of Hormuz.