Houthi Escalation Sends Oil Prices Soaring to Highest Levels Since May
The escalating conflict in the Middle East has put additional pressure on American consumers as oil prices surge. 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 has sent oil prices to their highest levels since May.
The average price of gas in the U.S. has climbed 17 cents in the past week, reaching $4.32 on Monday. The impact is also being felt at stores, where Costco raised the price of its Kirkland brand motor oil to $58 for a five-quart, two-pack, up from $30 last year.
The war with Iran and continued limits on oil shipments through the Strait of Hormuz remain unresolved. Brown University's Iran War Energy Cost Tracker estimates U.S. households have spent $815 more so far since the war began due to rising gas prices.