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 key oil price gauge in North America, closed the day at slightly over $91, a sharp increase from about $67 just a week earlier. This uptick in prices coincided with the onset of a new conflict between the U.S., Israel, and Iran, leading to heightened tensions and fears of potential disruptions to oil supply routes.
The escalating conflict in Iran has raised concerns about possible drone or missile attacks, prompting a near-complete halt in tanker traffic through the vital Strait of Hormuz. This strategic waterway, responsible for a significant portion of global oil transportation, is crucial for countries such as Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran to export oil and gas to international markets.
Speaking on Fox News, U.S. Energy Secretary Chris Wright indicated that the current spike in oil prices is expected to be a short-term impact lasting “weeks, not months.” He highlighted Iran’s historical role in fueling energy price fluctuations and emphasized the need to address the country’s destabilizing actions.
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 around 120 cents per liter. Similarly, in Canada, gas prices spiked to 135.3 cents per liter following the recent airstrikes, up from an average of 128.8 cents a month earlier. Gas wizard, a platform monitoring gas prices across the country, forecasts that prices could climb to nearly 153 cents per liter by Saturday.
