Middle East Conflict Sends Oil Prices Soaring to Highest Levels Since May

The escalating conflict in the Middle East is causing tension on oil routes, leading to higher prices at the pump for American consumers. The Iran-backed Houthi rebels have seized parts of the Red Sea coast, forcing Saudi Arabia to shut down a critical East-West oil pipeline.

As a result, oil prices have reached their highest levels since May, with the average price of a gallon of gas in the U.S. increasing by 17 cents in just one week to $4.32 on Monday. This rise is not limited to gasoline; Costco has raised its Kirkland brand motor oil prices from $30 last year to $58 for a five-quart, two-pack, and customers are now limited to buying only one box per week.

The ongoing 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.