U.S. crude oil prices surged over $90 per barrel on Friday, marking the highest level in over two years. West Texas Intermediate (WTI) crude, the primary oil price indicator in North America, closed the day slightly above $91, a significant increase from approximately $67 a week earlier. This spike was notably influenced by the recent military actions initiated by the U.S. and Israel against Iran and its affiliates.
The escalating conflict in Iran, coupled with the looming threat of potential Iranian drone or missile assaults, has resulted in the near total halt of tanker movements through the Strait of Hormuz. This strategic waterway, serving as the sole exit point from the Persian Gulf and facilitating 20% of the global oil demand, has faced severe disruption. Tankers traversing this critical passage, bordered to the north by Iran, transport oil and gas from countries such as Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran itself.
U.S. Energy Secretary Chris Wright, speaking on Fox News, anticipated that the current price escalation would endure for “weeks, not months.” He emphasized Iran’s longstanding impact on energy costs and expressed the necessity to curb their disruptive activities, which have persisted for nearly five decades. As a consequence, gas prices in the U.S. have surged by an average of 34 cents per gallon, reaching $3.32, equivalent to 120 cents per litre.
Following the recent airstrikes, gas prices in Canada surged to 135.3 cents per litre, as reported by Gasbuddy.com, representing an increase from the previous month’s average of 128.8 cents. GasBuddy, a platform monitoring gas prices nationwide, projects that gas prices could climb to approximately 153 cents per litre by Saturday.