Suddenly it’s 1978 All Over Again

It must be time to break out the mood rings and platform shoes.  The Wall Street Journal reports that the nascent recovery could be threatened by a spike in oil prices.

Prices at the pump have risen sharply in recent weeks. The average price of a gallon of regular gasoline has jumped 13.5 cents to $3.518 in the past week, according to the auto club AAA. Some parts of the country have seen even bigger increases, with prices approaching $4 per gallon in parts of California.

The even bigger risk: Rising tensions with Iran have raised the threat of a major disruption in global oil supplies, which experts say could send the price of crude oil skyrocketing. On Tuesday, oil futures rose on reports that Iran would cut off sales to six European countries in response to the European Union’s newly imposed embargo against Iranian oil. Iran’s oil minister later denied the report.

You can read the latest here.

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