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 key pricing benchmark in North America, closed the day slightly above $91, a significant increase from about $67 just a week earlier. The uptick in prices coincided with the recent initiation of military actions by the U.S. and Israel against Iran and its allies.
The ongoing conflict in Iran and the looming threat of potential drone or missile attacks from the country have led to a near-complete halt in tanker traffic through the vital Strait of Hormuz, the primary maritime route for 20% of the global oil supply. This strategic waterway, located north of Iran, serves as a crucial passage for oil and gas shipments from major producers like Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright, speaking on Fox News, predicted that the current surge in oil prices would likely endure for “weeks, not months.” He emphasized Iran’s historical role in escalating energy prices and expressed the necessity of curbing Iran’s disruptive activities.
In response to the escalating oil prices, gas prices in the United States have surged by an average of 34 cents per gallon, reaching $3.32, equivalent to approximately 120 cents per liter. Similarly, following the recent airstrikes, gas prices in Canada have spiked to 135.3 cents per liter from the previous average of 128.8 cents a month ago. Gasbuddy.com reported that gas prices could further soar to nearly 153 cents per liter on Saturday, according to Gas Wizard, a website monitoring national gas price trends.
