The national average gas price hit $3.40 per gallon, up from $2.98 just a week ago
US oil futures continued to climb on Sunday trading, jumping as much as 20% and moving near a $120-per-barrel mark for the first time since the Russia-Ukraine war in 2022.
The rapid escalation is driven by ongoing blockades in the Strait of Hormuz near Iran, which have severely restricted the flow of Middle Eastern crude to global markets.
Futures tied to the Dow Jones Industrial Average fell about 595 points, or 1.25%, after briefly dropping more than 1,000 points. S&P 500 futures declined 1.1%, while Nasdaq-100 futures slipped 1.2%.
The national average gas price hit $3.40 per gallon, up from $2.98 just a week ago.
President Donald Trump characterized the oil price spikes as a short-term trend and as a “very small price to pay” for neutralizing Iran’s nuclear threats.
With key inflation and GDP data expected later this week, investors are bracing for further market volatility.
Experts are warning of price hikes on several consumer goods.
Since petroleum is a foundational component in manufacturing and logistics, consumers could see price hikes on everything, including groceries, airfare, rideshare, and household essentials.
The agricultural sector is particularly vulnerable, as energy and oil-based products like fertilizers and plastic packaging can account for up to 50% of food production costs.
Everyday items such as synthetic clothing like polyester, plastic toys, and home heating oil are expected to see modest to significant price increases.
People are recommended to avoid unnecessary driving, buy essential goods in bulk to lock in current prices, and pad their budgets to mitigate the rising cost of living.