Middle East Conflict Drives US Gas Prices to Highest Levels Since May
A conflict in the Middle East has sent shockwaves to American consumers, causing gas prices to surge to their highest levels since May. The Iran-backed Houthi rebels have seized key parts of the Red Sea coast, forcing Saudi Arabia to shut down a critical oil pipeline.
The disruption led to an immediate increase in oil prices, with the average price of a gallon of gas in the US climbing 17 cents to $4.32 on Monday. This is having a ripple effect, with retailers such as Costco raising their prices for motor oil and limiting customers to one box per week.
The broader war with Iran and continued limits on oil shipments through the Strait of Hormuz remain unresolved. The US has been trying to stabilize the situation, but experts warn that energy prices may continue to climb if China reenters the market more aggressively.