Global oil prices surged to their highest level in five months on Tuesday, driven by escalating tensions in the Middle East. Iran and its Houthi allies claimed responsibility for attacks on oil infrastructure, pushing the Brent crude futures price to $111 a barrel before it settled at $110.30. This marks a 55% increase since the Iran war began in late February.
The United Kingdom Maritime Trade Operations Center reported an incident involving a tanker and military forces off the coast of Oman. Meanwhile, Iranian state-run media stated that two oil tankers hit naval mines south of the Strait of Hormuz. These developments followed Houthi militants' strikes on Saudi Arabia's Shaybah oil field and Saudi Aramco facilities in Yanbu.
The West Texas Intermediate futures price also rose, reaching $105.75, a 60% increase since the war started. The average price of a gallon of gas in the U.S. climbed to $4.27, up nearly $1.30 since late February. The conflict has contributed to higher fuel prices and inflation, which peaked in May before easing slightly over the summer.
The U.S., the world's largest oil producer, imports a small amount of crude from the Middle East. However, the global market dynamics have driven up prices for all consumers, including American drivers. The tentative peace agreement between the U.S. and Iran expired in August, leading to renewed attacks on oil infrastructure and ships in the region.