Oil's 5-Month High Is a Tax on Households, Unless You Own Energy Stocks

Brent crude reached $110.70 a barrel on Monday, the highest since May 20, as new attacks on Gulf shipping raised the global benchmark. Gulf oil flows have recovered to about 80% of prewar levels, US Energy Secretary Chris Wright said, but Kpler counted 18 reported ship attacks in two weeks and Iran vowed to control the Strait of Hormuz. The costs are reaching households through US regular gasoline averaging $4.33 a gallon, more than $1 above a year earlier, while September consumer inflation was 3.7% and energy prices were up 20.4% year over year. Energy investors have benefited, with the S&P 500 energy sector gaining 51% this year through Oct. 14 versus about 13% for the broad index.