Middle East Conflict Sends Global Oil Prices Soaring
The escalating conflict in the Middle East has dealt a significant blow to the Trump administration's efforts to lower gasoline prices ahead of the midterm elections. The global Brent crude benchmark price has surged more than $25 a barrel since President Donald Trump declared the tenuous ceasefire with Iran 'OVER!' earlier this month, topping $100 briefly on Thursday.
The conflict has resulted in attacks on three major shipping routes, including the Strait of Hormuz, which has been a point of contention. Global crude oil inventories are reaching critically low levels, and temporary measures to keep markets afloat since the war in Iran began are nearing their end.
The rising gas prices present a threat to Republican slim majorities in Congress, with gasoline prices jumping 15 cents from last week to $4.09 a gallon on Thursday, according to the American Automobile Association.