Middle East Conflict Sends Oil Prices Soaring Above $100 a Barrel
The conflict in the Middle East has led to a surge in oil prices, with Brent and WTI Crude Oil reaching above $100 a barrel. The recent military offensive by Iran-backed Houthi forces in Yemen has taken control of the port city of Mocha, allowing them to control parts of the Red Sea and the Bab El-Mandeb Strait, where 8-9 percent of oil flows through daily.
Dr. Jared Pincin, a professor of economics at Cedarville University, explains that this will likely lead to higher oil prices. He states, 'If you choke off another point within the Middle East with oil, then we should expect oil prices to rise.' The disruption in oil supply has already begun, with drone attacks destroying the pumphouse of the East West Pipeline in Saudi Arabia, disabling the pipeline that transported 4-5 million barrels of oil a day.
Nationwide, diesel is at an all-time high of $6.26 a gallon, according to AAA. This could lead to higher prices of goods and services due to increased input costs for industries reliant on diesel, such as agriculture and trucking.