Oil Prices Rise as Middle East Tension Continues

The global oil benchmark, Brent crude, climbed 4 % to about $109 a barrel for July delivery. Before the conflict in Iran, this grade 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 watch the Strait of Hormuz closely, a narrow channel between Iran and Oman that normally moves up to one‑fifth of the world’s oil. Gasoline in the United States hit a new high, averaging $4. 23 a gallon on Wednesday – the highest since the war began. The rise translates to a 42 % increase in costs for drivers, according to AAA data. Diesel prices surged even faster, reaching $5. 64 a gallon – a 50 % jump since the conflict started.The S&P 500 slipped slightly early in the day but remains near record highs, thanks to strong earnings from major U. S. firms. European stocks dipped a touch; the Stoxx 600 lost about 0. 3 %. 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.