Iran conflict pushes oil prices to highest since mid-2022

The escalating conflict with Iran has produced a sharp energy shock, sending prices noticeably higher; in short, oil prices have surged to levels not seen since mid-2022.

The supply disruption is already showing up at the pump and in production statistics: Iraq cut output by more than two-thirds, and the U.S. national average for unleaded gasoline has risen to about $3.54 per gallon, roughly 21 percent higher than a month ago.

Much of the pressure stems from disruptions to shipping and regional production: industry sources report a Strait of Hormuz that has effectively halted normal tanker traffic and a broader slowdown in Middle East output, producing one of the sharpest oil squeezes in decades.