The Energy Shock Is Here

Brent crude has surged to $118 per barrel — the highest since 2022 — following devastating tit-for-tat attacks on energy infrastructure across the Persian Gulf. American drivers are already feeling the pain, with the national average gas price climbing sharply.

What Happened

The escalation has been rapid and devastating:

  • Israel struck Iran's South Pars gas field, despite President Trump claiming the US had no advance knowledge. Israeli officials contradicted Trump, telling media the strike was coordinated with Washington.
  • Iran retaliated by striking gas and oil refineries in three Gulf countries — including Qatar's Ras Laffan, the world's largest LNG hub.
  • Trump threatened to "massively blow up the entirety" of the South Pars field if Iran attacks Qatar again.

The Impact on American Wallets

U.S. West Texas Intermediate crude is trading around $96 per barrel. European natural gas prices surged 24% in a single day. The Strait of Hormuz — through which roughly 20% of the world's oil passes — is effectively paralyzed for tanker traffic.

With the Fed already holding rates steady and inflation fears rising, this energy shock could push the U.S. economy toward the dreaded stagflation scenario that analysts have been warning about.