Houthi Escalation Drives Oil Prices to Highest Levels Since May

A recent escalation in the Middle East has led to an increase in oil prices, affecting American consumers. The Iran-backed Houthi rebels have seized key parts of the Red Sea coast, forcing Saudi Arabia to shut down a critical East-West oil pipeline.

This disruption sent oil prices to their highest levels since May, reaching $4.32 per gallon on Monday. The average price of gas in the U.S. has climbed 17 cents in the past week, with the impact showing up on store shelves as well.

Costco has raised the price of its Kirkland brand motor oil to $58 for a five-quart, two-pack, up from $30 last year. The company is now limiting customers to one box per week.

The broader war with Iran and continued limits on oil shipments through the Strait of Hormuz remain unresolved, resulting in higher costs for U.S. households. According to Brown University's Iran War Energy Cost Tracker, American households have spent $815 more so far since the war began due to rising gas prices.