U.S. crude oil prices surged above $90 per barrel on Friday, marking the highest level in over two years. The West Texas Intermediate (WTI) crude, which serves as the benchmark for oil pricing in North America, closed the day at slightly above $91, a notable increase from about $67 just a week ago. This escalation coincided with the commencement of a new conflict initiated by the U.S. and Israel against Iran and its affiliated groups.
The ongoing conflict in Iran, coupled with the looming threat of potential drone or missile attacks from Iran, has resulted in the near-complete cessation of tanker traffic passing through the vital Strait of Hormuz. This narrow waterway, situated at the northern border of Iran, serves as the primary gateway for oil and gas transportation from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran, catering to approximately 20% of the global oil demand.
Speaking on Fox News, U.S. Energy Secretary Chris Wright predicted that the surge in prices is likely to persist for “weeks, not months.” He elaborated on Iran’s historical impact on energy prices, expressing the necessity to halt Iran’s disruptive actions and ensure the safety of Americans and neighboring nations.
In response to the escalating oil prices, gas prices in the United States have surged by an average of 34 cents per gallon over the past week, reaching $3.32, or 120 cents per liter. Similarly, following the recent airstrikes in the region, Canadian gas prices surged to 135.3 cents per liter from an average of 128.8 cents a month earlier, as reported by Gasbuddy.com. Gas wizard, a platform monitoring gas prices nationwide, anticipates a further increase to nearly 153 cents per liter on Saturday.
