US-Iran Conflict Sends Heating Oil Prices Soaring This Winter
A war in Iran is set to impact households in the Northeast US this winter, with heating oil prices expected to rise by 31.3% compared to last year. According to the National Energy Assistance Directors Association (NEADA), heating oil households will pay an average of nearly $2,300 between mid-November and mid-March, which is a significant increase from last winter's total seasonal spending per household.
The disruption in shipping through the Strait of Hormuz due to the US war with Iran has led to a surge in Brent crude prices, which are used to refine heating oil. As a result, wholesale prices have increased by over 30% since the war began, directly affecting delivery bills for households.
In contrast, natural gas users may catch a break this winter, with the American Gas Association (AGA) projecting a 14% decrease in costs compared to last year. This is due to record dry gas production and high underground reserves, which put natural gas in a strong supply position.