Middle East Conflict Squeeze: Oil Prices Soar Amid Disrupted Supplies

Escalating conflicts in the Middle East have sent shockwaves through oil markets, pushing prices to their highest levels since May. The Iran-backed Houthi rebels' seizure of key parts of the Red Sea coast has forced Saudi Arabia to shut down a critical pipeline, disrupting global oil supplies.

The disruption has led to a significant increase in oil prices, with the average price of a gallon of gas in the U.S. climbing 17 cents in the past week to $4.32 on Monday. This is having a ripple effect on everyday costs for American consumers, with retailers such as Costco raising their prices for motor oil and limiting customers to one box per week.

The ongoing war between Iran and its allies has led to continued limits on oil shipments through the Strait of Hormuz, further exacerbating the situation. Analysts are closely watching China's next move, as Beijing's decision to slash oil imports earlier in the conflict helped keep global prices from rising even higher.