Rebecca Babin, senior energy trader at CIBC Private Wealth, joins ‘Squawk Box’ to discuss the oil market amid Middle East conflict, whether oil prices will rise, and more.

The Israel-Iran conflict is pushing up global petroleum prices, but American oil producers have little interest in dramatically scaling up their operations.

Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

Rising Middle East tensions have driven oil prices higher, potentially boosting Texas Pacific Land's future earnings. Read why TPL stock is a hold for now.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

Although the U.S. is a net oil exporter, higher oil prices could increase inflation and lower economic growth.