Saudi Pipeline Closure Sparks Fuel Price Fears

Fuel prices are expected to surge further as Saudi Arabia's critical pipeline remains closed following a drone strike, Bloomberg reported. The pipeline can move 7 million barrels of crude oil per day, and its closure has sparked concerns about global oil supply.

Andrew Lipow, a petroleum consultant, said that if Saudi Arabia cannot bypass the pipeline pump stations, it could take one to two months for operations to resume at full capacity. Even then, output might only reach 50% capacity in the next few days. The damage assessment is ongoing, making it difficult to predict when the pipeline will reopen.

The national average gas price has hit $4.46, while diesel reached a record high of $6.44, according to AAA. California's residents are particularly affected, with an average diesel price of $8.39. The impact is not limited to consumers; higher delivery costs and fuel surcharges will be passed on to businesses.

A recent Fox News poll showed that 61% of registered voters consider gas prices a major problem, a 13-point increase from two years ago. American households have paid an extra $460 in gas and $378 in diesel since the Iran war began.