Key facts
- Gasoline prices have risen 34.2% and fuel oil 74.2% over the past 12 months.
- Overall US inflation stands at 3.7% over the past year.
- Political volatility is increasingly becoming an energy cost, disrupting federal funding cycles.
As voters prepare for midterm elections, US energy prices have reached record highs, with gasoline up 34.2% and heating oil up 74.2% over the past year. These increases, contributing to overall US inflation of 3.7%, are largely attributed to oil and gas trade disruptions stemming from conflicts involving the US and Israel in Iran. Business Insider reported that these international strains are effectively acting as a pay cut for Americans, as rising prices outpace wage growth. Historically, global energy markets have significantly influenced political agendas, a phenomenon ECB official Isabel Schnabel termed 'fossilflation.' The Atlantic Council noted that political volatility itself has become an energy cost, as policy shifts every four years disrupt federal funding cycles and project economics. To mitigate these impacts, a more durable federal framework rewarding energy performance and a diverse energy mix are advocated to shelter consumers and politicians from price turmoil.