Middle East Conflict Drives Oil Prices to Highest Levels Since May

The ongoing conflict in the Middle East has led to a significant increase in oil prices, causing pain at the pump for 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 soaring to their highest levels since May.

The average price of a gallon of gas in the U.S. has risen by 17 cents in the past week, reaching $4.32 on Monday. The impact is being felt at retail stores as well, with Costco raising the price of its Kirkland brand motor oil to $58 for a five-quart, two-pack, up from $30 last year.

The broader war with Iran and continued limits on oil shipments through the Strait of Hormuz remain unresolved. According to Brown University's Iran War Energy Cost Tracker, U.S. households have spent an additional $815 so far since the war began due to rising gasoline and diesel costs.