Middle East war pushes oil and gas prices higher, raising fears for consumers

The war in the Middle East is shaking the global energy market and pushing fuel prices higher, raising concerns that ordinary consumers, especially in Europe, will soon feel the impact.

Attacks on oil facilities and disruptions near the Strait of Hormuz have already driven global oil prices up about 10% since the conflict began. U.S. crude recently traded at around $74 a barrel while Brent crude reached about $81.

Europe could face particular pressure. Gas prices have already surged roughly 75% since the start of the war and could double as supplies tighten. The situation is made worse by low gas reserves after a harsh winter, leaving Europe with storage levels at only about 30%. Natural gas is crucial for heating homes, producing electricity and powering industries across the continent, meaning higher prices are likely to hit households and businesses.

At the same time, hopes that the United States could quickly replace Middle Eastern oil supplies appear limited. The International Energy Agency says new U.S. shale wells may add some supply this year, but the increase would be small compared to the roughly 20 million barrels of oil produced daily by Gulf countries.

Industry leaders also warn they are hesitant to ramp up production unless oil prices stay high and stable. Some analysts say if supply disruptions continue, oil prices could climb above $100 a barrel, a move that would push up gasoline prices, increase inflation and slow global economic growth.