By CATHY BUSSEWITZ, MAE ANDERSON and CHRIS RUGABER AP Business Writers
Sharply swinging oil prices have left consumers feeling the effects of the Iran war and its damage to worldwide energy production. Gasoline prices are climbing. Many people will find some of the most immediate economic pain at the pump. But not only drivers will be affected. Nearly all goods that are bought and sold must travel from where they're produced. That includes food. Those costs will climb with higher gasoline, diesel and jet fuel prices. Heating a home and cooking with natural gas are likely to cost more as the war grinds on. And the spike in oil prices will likely be a big factor for U.S. inflation. As the war continues, some experts say the price of everything could be affected.
Worries about the war with Iran sent oil prices back to $100 per barrel and stocks sinking worldwide. The S&P 500 fell 1.5% Thursday and returned to big swings following a couple days of relative calm. The Dow Jones Industrial Average dropped 1.6%, and the Nasdaq composite sank 1.8%. The center of action was again the oil market, where the price of a barrel of Brent crude got as high as $101.59. Treasury yields climbed in the bond market on worries about higher inflation and fewer cuts to interest rates by the Federal Reserve.
By ALEX VEIGA, ELAINE KURTENBACH and WYATTE GRANTHAM-PHILIPS AP Business Writers
Oil prices continued to soar on Monday as the Iran war intensified, threatening production and shipping across the Middle East and straining energy supplies worldwide. The price of Brent crude, the international benchmark, briefly surged to $119.50 per barrel on Monday — its highest level since the summer after Russia invaded Ukraine in 2022. West Texas Intermediate, which is produced in the U.S., also soared to $119.48 per barrel at one point. The conflict, now in its second week, is ensnaring countries and infrastructure critical to the production and transportation of oil and gas worldwide.
Shares of major U.S. companies in the energy sector are sharply higher after President Donald Trump announced plans to take control of Venezuela's oil industry and said American companies would revitalize it after capturing President Nicolás Maduro. While the U.S. action is unlikely to have an immediate impact on crude prices given the current glut in the market, it could upend energy markets. Venezuela's oil industry is in disrepair after years of neglect and international sanctions. Some oil industry analysts believe that Venezuela could double or triple its current output of about 1.1 million barrels of oil a day and return the nation to historic production levels relatively quickly, others see a much longer road ahead.
Gas prices are once again on the decline across the U.S. That's bringing some relief to drivers now paying a little less to fill up their tanks. The AAA motor club says the national average for gas prices on Monday stood around $3.44 a gallon. That's down about 8 cents from a week ago, more than 19 cents from one month back, and over 14 cents down from this time last year. Why the recent fall in prices at the pump? Industry analysts point to a blend of mild demand and increasing supply — as well as relatively mild oil prices worldwide. The future is never promised. But, if there are no major unexpected production interruptions, some experts say that prices could keep working their way lower.
