Houthi Rebels Spark Global Oil Price Surge
New tensions in the Middle East are sending shockwaves through global oil markets, causing prices to soar and putting further strain 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.
The disruption has sent oil prices to their highest levels since May, with the average price of a gallon of gas in the U.S. climbing 17 cents in the past week to $4.32 on Monday. This increase is particularly concerning for households, as Brown University's Iran War Energy Cost Tracker estimates that U.S. households have spent $815 more so far since the war began due to rising gasoline and diesel costs.
House Speaker Mike Johnson has weighed in on the issue, stating, 'Obviously, gas prices are too high right now. Diesel prices are too high. There's a very simple reason for it. It's tied, of course, to the Strait of Hormuz.'