US Oil Prices Surpass $100 a Barrel Amid Middle East Conflict
Oil prices have surpassed $100 a barrel for the first time since May amid renewed fighting and military strikes in the Middle East. The elevated price is expected to put more strain on the finances of US consumers.
Gasoline prices are already returning to $4 or more in most states, with the U.S. average price for regular gasoline reaching $4.09 a gallon on Thursday, 15 cents higher than a week ago. Motor club AAA warns that prices at the pump may keep rising at least into next week.
Higher fuel costs will likely trickle down to consumers and businesses through increased expenses for shipping goods. Companies such as UPS and FedEx have already introduced fuel surcharges and other fees due to rising fuel costs, which are up 51% from January and February.
The conflict in the Middle East is also expected to impact back-to-school shoppers, with prices potentially increasing by 5% due to higher petroleum-based materials used in footwear manufacturing. Airlines have responded to the jump in fuel costs by raising fares and add-on fees, leaving travelers facing higher prices and fewer options.