U.S. crude oil prices surged past $90 per barrel on Friday, marking the highest level in over two years. West Texas Intermediate (WTI) crude, the primary benchmark for oil pricing in North America, closed the day at slightly above $91, a significant increase from about $67 just a week earlier. The uptick in prices coincided with the onset of a new conflict involving the U.S. and Israel against Iran and its affiliated groups.
The escalating tensions in Iran and the looming threat of potential drone or missile attacks have led to a near-complete halt in tanker traffic passing through the vital Strait of Hormuz. This strait, serving as the sole maritime outlet from the Persian Gulf and facilitating 20% of the global oil supply, has seen a disruption in the flow of oil and gas from countries like Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright shared on Fox News that the current price spike is anticipated to endure for “weeks, not months.” He emphasized that Iran has historically been a driving force behind energy price escalations and highlighted the need to curb their disruptive activities, which pose threats to American lives and regional stability.
In response to the escalating tensions, gas prices in the U.S. have surged by an average of 34 cents per gallon, reaching $3.32, equivalent to 120 cents per liter. Following the recent airstrikes, Canadian gas prices have also climbed to 135.3 cents per liter, as reported by Gasbuddy.com, compared to an average of 128.8 cents a month earlier. Gas Wizard, a platform monitoring gas prices nationwide, projects a potential increase to nearly 153 cents per liter by Saturday.