Richard Arnold: US Correspondent on oil prices surpassing US$100 a barrel as conflict in the Middle East escalates

The price of oil has surpassed US$100 a barrel for the first time since May.   It comes after Yemen's Houthi rebels targeted Saudi Arabian ships in the Red Sea – threatening to cut off a crucial route for the kingdom's oil exports.  Meanwhile, the US has carried out its 12th consecutive night of strikes on Iran.    US Correspondent Richard Arnold told Mike Hosking financial group Goldman Sachs is predicting the crude price might exceed $120 a barrel in the fourth quarter, and average at least $100 next year.  He says they’re already seeing price spikes and the pump, and it’s putting pressure on stocks – the Dow dropping by 0.97%.  LISTEN ABOVE See omnystudio.com/listener for privacy information.