Houthi Escalation Sends US Gas Prices Skyrocketing
A recent escalation in the Middle East, led by Iran-backed Houthi rebels, has disrupted oil routes and pushed up gas prices for American consumers. The conflict has forced Saudi Arabia to shut down a key East-West oil pipeline, causing oil prices to surge to their highest levels since May.
The average price of a gallon of gas in the U.S. has increased by 17 cents in the past week, reaching $4.32 on Monday. This rise is already showing up at store shelves, with Costco raising its Kirkland brand motor oil prices from $30 to $58 for a five-quart, two-pack.
The broader 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 due to rising gas and diesel prices.