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, a key indicator for oil costs in North America, closed the day at slightly above $91, a significant increase from about $67 just a week earlier. This price jump coincides with the recent military actions initiated by the U.S. and Israel against Iran and its affiliated groups.
The escalating conflict in Iran and the looming threat of potential drone or missile strikes from Iran have led to a near-complete halt in tanker traffic passing through the vital Strait of Hormuz. This waterway serves as the primary maritime route out of the Persian Gulf and accounts for 20% of the global oil supply. Tankers navigating through the strait, bordered by Iran to the north, transport oil and gas from various countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright, speaking on Fox News, projected that the surge in prices could persist for “weeks, not months.” He emphasized Iran’s historical role in fueling energy price escalations over almost five decades and expressed confidence in curbing Iran’s disruptive capabilities.
In response to the escalating tensions, gas prices in the U.S. have climbed by an average of 34 cents per gallon in the past week, reaching $3.32 per gallon or approximately 120 cents per liter. Meanwhile, following the recent airstrikes, gas prices in Canada surged to 135.3 cents per liter, as reported by Gasbuddy.com. This represents an increase from the average price of 128.8 cents per liter a month ago. Gas tracking website Gas Wizard anticipates a further rise in gas prices, predicting a possible increase to nearly 153 cents per liter by Saturday.