Oil Price Surge Sends Shockwaves Through Global Economy

Higher oil prices are causing pain for consumers as global supplies become stranded in the Middle East due to renewed fighting and military strikes. Brent crude, the international standard, reached $100 a barrel on Thursday, marking a significant turn from lower prices enjoyed briefly when hostilities between the U.S. and Iran waned in June.

Companies that produce and sell fresh food, school supplies, and other goods reliant on fuel are passing their increased expenses to consumers. 'Since everything relies on petroleum in our economy, for good or ill, if the cost of petroleum goes up, then everything else goes up as well,' said Joe Adamski, a managing director at procurement services company ProcureAbility.

Gasoline prices have returned to $4 or more in most states, with regular gasoline averaging $4.09 a gallon on Thursday. Motor club AAA warned that prices could continue rising into next week due to the typical lag along the oil industry's supply chain.

Higher fuel costs for ships, trucks, and air carriers are also affecting consumers and businesses that depend on shipping. UPS and FedEx introduced fuel surcharges and fees as fuel prices increased, leading to higher truckload pricing and capacity constraints.