Houthi Escalation Sends Oil Prices Soaring, Gas Costs Hit New High
A recent escalation in the Middle East has caused oil prices to surge, putting additional pressure on 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, with the average price of a gallon of gas in the US climbing 17 cents in the past week, reaching $4.32 on Monday.
The impact is not limited to gas prices, as Costco has raised the price of its Kirkland brand motor oil to $58 for a five-quart, two-pack, up from $30 last year, and is now limiting customers to one box per week.
House Speaker Mike Johnson said that 'gas prices are too high right now' and called for stabilizing commerce in the Strait of Hormuz, which he believes will happen soon.