A $0.50 per gallon rise in gasoline prices could cost U.S. households $60 monthly, pressuring consumer spending and GDP growth.
Chevron CEO Mike Wirth cautioned that supply outages in Europe, Asia, and Australia linked to the Iran conflict may disrupt global oil markets. The warning comes as domestic production remains strong but geopolitical risks threaten price stability.
A $0.50 increase in gasoline prices over two weeks would add $60 in monthly costs for a typical two-car household. Consumer spending, which accounts for 68% of U.S. GDP, could weaken as households face higher energy costs alongside food inflation and elevated borrowing expenses.
The S&P 500 recently hit fresh highs, and unemployment held at 4.3%, but rising oil prices may erode consumer sentiment before Wall Street reacts.