Middle East Conflict Drives Oil Prices Higher, Stagflation Fears Emerge
U.S. gasoline prices surged nearly 17% in a week, reaching a national average of $3.48 per gallon as Middle East tensions disrupt global oil supplies. Brent crude crossed $110 per barrel after Iran restricted tanker traffic through the critical Strait of Hormuz, which handles 20% of global oil shipments.
Analysts now see an 80% probability of $4/gallon gasoline within a month, a level last seen in August 2022. Diesel prices have already spiked to $4.66/gallon from $3.77 just seven days prior. The price shock comes as Iran continues missile strikes against Israel in response to U.S.-backed operations.
Wall Street grows increasingly concerned about stagflation risks as energy costs soar alongside weakening labor data. The rapid price movements echo commodity market behaviors that historically precede capital rotations into alternative stores of value.
