Middle East Conflict Drives Gas Prices to Record Highs
Gas prices in the United States have been rising rapidly, with the national average for regular gasoline reaching $4.46 per gallon on September 18, according to AAA. Diesel prices are even higher, at over $6.1 per gallon, as reported by GasBuddy.
The ongoing conflict in the Middle East is a major contributor to these high gas prices. The Strait of Hormuz, one of the world's most important oil shipping routes, has been disrupted due to the conflict involving Iran. This has caused problems for the transportation of oil through the region, leading to increased oil prices worldwide.
A recent attack on Saudi Arabia's East-West pipeline has further complicated matters. The pipeline is a crucial alternative route that allows oil to bypass the Strait of Hormuz and reach global markets. The damage to this pipeline has put an estimated 2.6-4 million barrels of oil per day at risk of disappearing from the market, representing around 4% of global oil supply.