Retail / news
Rising Gas Prices Threaten to Squeeze Holiday Retail Supply Chains
U.S. gasoline prices have climbed roughly 50% since the conflict involving the U.S., Iran and Israel began on Feb. 28, with sharp state-level jumps hitting just as retailers enter their most important selling period of the year.
Retailers heading into the year's biggest sales stretch are absorbing a new round of cost pressure from fuel, as gasoline prices across the United States continue to climb.
Nationwide, the price of gas is up about 50% since Feb. 28, when the conflict between the U.S., Iran and Israel started. The increases intensified last week in several states, adding another layer of strain on top of months of elevated prices.
In Wisconsin, the average cost of a gallon of gas rose 61 cents in just eight days. In Nashville, prices pushed past $4 a gallon for the first time in three months.
Part of the renewed surge is tied to drone strikes on a pipeline that serves as Saudi Arabia's main route for transporting oil as an alternative to the Strait of Hormuz.
The spike lands at a difficult moment for the retail industry, since the holiday period drives a large share of annual sales for many merchants.
There is some cushion, however: many retailers have already moved the bulk of their holiday inventory into the United States from overseas, softening the immediate shipping impact.