U.S. crude oil prices surged above $90 per barrel on Friday, marking a milestone not seen in over two years. West Texas Intermediate (WTI) crude, the primary benchmark for oil pricing in North America, closed the day slightly exceeding $91, a significant increase from approximately $67 just a week ago. This uptick coincides with the onset of the recent military actions initiated by the U.S. and Israel against Iran and its affiliated groups.
Amid escalating hostilities in Iran and the looming threat of potential drone or missile attacks from the Iranian side, almost all vessel movements through the Strait of Hormuz have come to a standstill. This strategic waterway serves as the sole maritime exit point from the Persian Gulf and facilitates the transportation of about 20% of the global oil demand. Tankers traversing the strait, which lies adjacent to Iran in the north, transport oil and gas from countries such as Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright, speaking on Fox News, anticipates that this surge in oil prices may persist for “weeks, not months.” He emphasized Iran’s historical role in fueling energy price escalations and expressed the need to curtail Iran’s disruptive activities that endanger American lives and destabilize neighboring nations.
In response to these developments, gas prices in the U.S. have climbed by an average of 34 cents per gallon in the past week, reaching $3.32 or 120 cents per liter. Similarly, following the commencement of airstrikes over the past weekend, gas prices in Canada spiked 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 earlier.
Gas wizard, a platform monitoring gas prices nationwide, forecasts a potential rise to nearly 153 cents per liter on Saturday. This projection aligns with the ongoing geopolitical tensions and disruptions affecting the global oil market.
