Oil Price Surge Tests Trump Administration Ahead of Midterms
Oil prices have surpassed $100 per barrel for the first time since July, putting pressure on President Trump's administration as it heads into midterm elections.
The increase is largely due to the ongoing conflict in the Strait of Hormuz, where US forces destroyed five Iranian oil tankers. This has led to a significant rise in Brent crude prices, which have climbed roughly 25% over the past month.
As a result, regular gasoline is now about $4.22 per gallon and diesel is nearing $6. The Strategic Petroleum Reserve, at its lowest level since 1982, cannot shield American consumers from world prices or swiftly replace a major Middle Eastern supply loss.
Saudi Arabia, in particular, faces an immediate threat as the Houthi attacks on its cities, energy facilities, and export routes continue to escalate. The country can send some oil west through the East-West Pipeline to Yanbu on the Red Sea, but this alternative route passes through areas vulnerable to Houthi menace.