Trump’s Iran War Crisis Sparks Rationing at Costco
Key Points:
- Costco is rationing its Kirkland Signature 5W-30 full synthetic motor oil, limiting members to two two-packs every seven days amid supply concerns linked to the Iran war.
- The price for ten quarts of this motor oil has nearly doubled, rising from about $30 to $58, reflecting broader inflation in petroleum-based products.
- Disruptions caused by the closure of the Strait of Hormuz have increased crude oil costs, with Brown University estimating over $100 billion in added gasoline and diesel expenses for the U.S. since February.
- Gasoline and diesel prices have surged, with averages at $4.31 and $6.23 per gallon respectively, intensifying financial strain on American consumers.
- The rationing at Costco may indicate more severe upstream supply chain issues, although public opinion largely opposes bearing high costs for the Iran conflict, with 69% viewing it as not worth the expense.