Oil Prices Plummet Amid Pipeline Closure and Rising Gas Costs
Oil prices have fallen for the first time this week due to Saudi Arabia's crucial oil pipeline closure, adding pressure on global oil supply. The Brent crude benchmark fell by 1.1% to $107.61 a barrel, while U.S. crude dropped by 2% to $103.70 a barrel.
The disruption in the oil supply chain is attributed to Yemen's Iran-backed Houthi rebels targeting infrastructure in Saudi Arabia and its shipping on the Red Sea. The closure of the pipeline has also contributed to rising gasoline prices in the U.S., with an average gallon costing $4.37, up from $4.22 a week ago.
The Federal Reserve is expected to raise interest rates for the first time in over three years, which could slow borrowing and cool costs. This decision comes despite President Donald Trump's desire for lower interest rates.