Average U.S. retail gasoline prices crossed $3 a gallon for the first time since November on Monday as the conflict in the Middle East worsened, setting up a key test of public approval of President Donald Trump’s decision to attack Iran, analysts said.
Tehran’s retaliation in response to U.S. and Israeli strikes has disrupted global oil supply, as it hit production facilities in neighboring countries and ships in the Strait of Hormuz, a key global trade route. Oil prices have surged, with Brent crude rising more than 5% to nearly $77 per barrel, and fuel prices moving up in tandem with the feedstock costs.
Yup. But its not a flat increase, some things travel further others more efficiently. Like where I live it might affect banana costs more than apple costs.
It disproportionately impacts lower cost goods. If it costs an extra 10 cents to ship a banana, that’s like a 20% increase in banana cost vs a 0.01% increase to ship an iphone the same distance. So another tax on the poor.