Oil Prices Rise as Middle East Tension Continues

Oil Prices Surge Amid Geopolitical Tensions

The global oil benchmark, Brent crude, climbed 4 % to about $109 a barrel for July delivery—its highest since the conflict in Iran, when it traded near $72 a barrel.

• U.S. West Texas Intermediate also jumped more than 4 % to just above $104 a barrel for June delivery.

Investors are keeping a close eye on the Strait of Hormuz, a narrow channel between Iran and Oman that normally moves up to one‑fifth of the world’s oil.

U.S. Fuel Prices Reach New Peaks

• Gasoline hit a new high, averaging $4.23 a gallon on Wednesday—the highest since the war began—translating to a 42 % increase in costs for drivers, according to AAA data.
• Diesel surged even faster, reaching $5.64 a gallon, a 50 % jump since the conflict started.

Market Reactions

• The S&P 500 slipped slightly early in the day but remains near record highs, buoyed by strong earnings from major U.S. firms.
• European stocks dipped a touch; the Stoxx 600 lost about 0.3 %.

Impact on Consumers

Bank of America analysts note that higher fuel prices squeeze household budgets, especially for low‑income families. Credit and debit card records show a 16.5 % rise in gasoline spending in March versus February.

While some consumers may use credit cards to buffer the shock, this option is limited for lower‑income households.

Overall savings and deposits are at historic highs, and larger tax refunds could help cover rising fuel bills for up to five months.