Middle East Tensions Send US Gas Prices Soaring
A recent escalation in the Middle East has led to increased pressure on oil routes, causing American consumers pain at the pump. The Iran-backed Houthi rebels have seized key parts of the Red Sea coast, forcing Saudi Arabia to shut down a critical East-West oil pipeline.
This disruption sent oil prices to their highest levels since May, reaching $4.32 per gallon in the US, according to recent data. The average price has climbed 17 cents in just one week.
The impact is not limited to gas prices; stores like Costco are also feeling the pinch, with a five-quart, two-pack of motor oil now priced at $58, up from $30 last year. Costco is limiting customers to one box per week due to this price hike.
Analysts are watching China's next move closely, as Beijing's decision to slash oil imports when the war first began helped keep global prices from climbing further. Now, with Chinese state-owned enterprises and independent refineries returning to the market, prices may rise even higher.