Global oil prices climbed to their highest level in five months on Tuesday after Iran and its Houthi allies claimed attacks on oil infrastructure in the Middle East, though prices pulled back from their peak during the session.4,2,3
The Brent crude futures price, the benchmark for global trading, topped $111 a barrel for the first time since May before retreating to $110.30. The latest reading marks a rise of more than 55% since the Iran war began in late February.4
Coverage of the day's trading described prices in differing ways. NBC News said crude had hit recent highs in midmorning before tumbling, and its headline characterized prices as whipsawing as markets weighed Middle East turmoil against uncertain demand. The New York Post's headline said prices hit a five-month high before reversing gains. CNBC's headline said prices were little changed as traders assessed developments in the region.3,2,1
The West Texas Intermediate futures price, the benchmark for U.S. trading, also rose on Tuesday, to $105.75. That is a gain of more than 60% since the war began.4
The price moves followed a series of claimed attacks. Yemen-based Houthi militants claimed a wave of strikes on Saudi Arabia on Monday, including on the Shaybah oil field and on Saudi Aramco facilities in Yanbu, a port city near a key transport corridor on the Red Sea.4
On Tuesday, Iranian state-run media reported that the Islamic Revolutionary Guard Corps claimed two oil tankers had hit naval mines south of the Strait of Hormuz. The United Kingdom Maritime Trade Operations Center, known as UKMTO, issued an advisory after receiving a report of an incident involving a tanker and military forces off the coast of Oman. The reports did not include independent confirmation of the Revolutionary Guard's claim.4
Crude sellers have faced a continuing oil shortage, and they typically pass elevated costs along to refiners, which leads to higher prices at the pump.4
The national average price of a gallon of gas in the United States was $4.27 on Tuesday, according to AAA, a rise of nearly $1.30 since the start of the war in late February. Separately, GasBuddy put the national average for regular gasoline at about $4.34 a gallon and diesel at about $6.25.4
The conflict has already affected the broader economy. It drove up fuel prices and pushed U.S. inflation to a three-year high in May. Inflation eased slightly over the summer after a preliminary peace agreement established an on-again, off-again pause in fighting. The tentative accord between the United States and Iran expired in August, and attacks on oil infrastructure and ships in the region continued.4
The United States is the world's largest oil producer and imports only a small amount of crude from the Middle East. Because oil and gas are sold on a global market, however, the shortage has pushed prices up for everyone, including American drivers.4
The increase comes as affordability has become a leading concern for voters ahead of the midterm elections in early November.4
The reports did not say whether the incident involving the tanker off Oman had been resolved, nor did they indicate how long the price swings on Tuesday would persist as traders continued to assess developments in the region.4,3,1
