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 prices in North America, closed the day just above $91, a significant increase from about $67 a week earlier. This spike followed the recent initiation of a new conflict by the U.S. and Israel against Iran and its allies, heightening tensions in the region.
The escalating conflict in Iran and the looming threat of Iranian drone or missile attacks have led to the virtual halt of tanker traffic passing through the vital Strait of Hormuz. This strategic sea passage, responsible for facilitating 20% of the global oil trade, has been impacted, disrupting the transportation of oil and gas from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright, speaking on Fox News, anticipated that the surge in oil prices would likely extend for “weeks, not months.” He emphasized Iran’s historical role in driving energy prices higher and expressed the need to address Iran’s disruptive actions.
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, equivalent to 120 cents per liter. Similarly, gas prices in Canada surged to 135.3 cents per liter following the recent airstrikes, up from an average of 128.8 cents a month ago. GasBuddy.com reported that prices could further increase, with Gas Wizard forecasting a potential rise to nearly 153 cents per liter by Saturday.