US crude oil settled above $100 a barrel. That number changes everything for global markets.

The Big Picture American oil prices ended the session above $100 for the first time since the US and Israel launched a war against Iran. This level hasn't been seen since 2022, when energy prices hit historic highs during the post-pandemic supply crunch.

The move reflects persistent geopolitical tensions now colliding with more complex market dynamics. Investors face a landscape where traditional assets show increasing volatility.

“Oil prices act as a thermometer for geopolitical risk and structural inflation.”

Why It Matters Real estate and investment markets sit directly in this crossfire. When oil breaches **$100**, it triggers a cost reassessment across the entire supply chain. Construction projects, material transportation, and commercial property operating expenses face immediate pressure.

REITs with exposure to logistics and storage properties could benefit from supply chain reconfiguration. But residential developers face tighter margins as construction costs climb.

Institutional investors are reallocating capital toward real assets that offer inflation protection. Oil above $100 signals that inflationary pressure isn't transitory. This reinforces the appeal of properties with inflation-indexed leases and assets with predictable cash flows.

The Bottom Line Watch how fund managers respond to this new energy reality. REITs specializing in industrial and logistics properties deserve attention, while high-cost residential developments may face headwinds. Next week brings key inflation data that will confirm whether this pressure holds.