$100 Oil Prices Send Shockwaves Through US Economy

Higher oil prices are hitting American consumers hard as the price of crude oil surpassed $100 a barrel on Thursday amid renewed fighting and military strikes in the Middle East.

The increased cost of petroleum is being felt across various industries, including transportation, grocery shopping, and shipping. According to Joe Adamski, a managing director at procurement services company ProcureAbility, 'Since everything relies on petroleum in our economy, for good or ill, if the cost of petroleum goes up, then everything else goes up as well.'

The price of regular gasoline averaged $4.09 a gallon on Thursday, with drivers in most states paying $4 or more. This is 15 cents higher than the previous week, and motor club AAA warns that prices at the pump are poised to keep rising at least into next week.

Grocery prices are also expected to rise due to increased fuel costs for farmers, food transportation, and packaging. The Footwear Distributors and Retailers of America trade group warned that increasing freight and material costs were creating big challenges for the footwear industry as families prepare for back-to-school shopping.