From Business Insider · Juliana Kaplan · · 2m
Iran war sends gas prices soaring ahead of midterms
Oil and gas prices have skyrocketed since February's Iran conflict, pushing inflation higher and threatening Trump's political standing as midterm elections approach.
In brief
Oil and gas prices have skyrocketed since February's Iran conflict, pushing inflation higher and threatening Trump's political standing as midterm elections approach. The Iran war has driven gas and oil prices sharply higher since February, fueling inflation that is outpacing wage growth and creating an affordability…
Gas prices stuck above four dollars
Gas prices have stayed above four dollars a gallon for more days this year than any other period. Americans are struggling with high costs and no relief appears near.
Iran war closes key oil waterway
The Iran war began in February and the Strait of Hormuz was subsequently closed. This key oil and gas transit waterway normally carries about a fifth of the world's oil supply.
Oil prices soar since war began
After the start of the war in February, crude oil prices soared and remain significantly higher than when Trump's second term began. Tanker traffic nearly ground to a halt early on.
US military maintains Middle East presence
While the US military has not carried out airstrikes against Iran directly in several months, it maintains a significant force presence in the Middle East, including more than a dozen warships, dozens of fighter jets…
Diesel prices hit record highs
Diesel prices in the US have spiked to around six point one eight dollars per gallon, an over two point five zero dollar increase over the year.In California, diesel hovers over eight dollars a gallon.
Inflation driven by energy costs
Inflation as tracked by the consumer price index increased to three point seven percent year-over-year in September, higher than economists expected.
Borrowing costs surge for Americans
The ten-year Treasury yield has surged since the war began, from below four percent at the end of February to a high of five point three one percent this month.
Wages fall behind rising prices
Wage growth remains slow and steady, but over the past few months, rising prices have outpaced pay increases.
More military action could worsen crisis
There are growing signs the US could be preparing for fresh military action against Iran. Another aircraft carrier strike group is sailing across the Pacific and is expected to enter the Middle East.
Houthis threaten another shipping route
The Trump administration faces a resurgence in attacks from the Houthis, a rebel group in Yemen.
The essence
The Iran war has driven gas and oil prices sharply higher since February, fueling inflation that is outpacing wage growth and creating an affordability crisis for voters ahead of the midterms.
