U.S. crude oil prices surged over $90 per barrel on Friday, marking the highest level in more than two years. The West Texas Intermediate (WTI) crude, a key oil price indicator in North America, closed the day slightly above $91, a significant increase from about $67 a week earlier. This spike followed the recent initiation of a new conflict by the U.S. and Israel against Iran and its allies.
The escalating tensions in Iran, coupled with the potential threat of drone or missile attacks from the country, have led to a virtual halt in tanker movements through the vital Strait of Hormuz. This strategic waterway, which serves as the primary exit point for oil shipments from the Persian Gulf, facilitates approximately 20% of the global economy’s oil requirements. Tankers navigating through the strait, located near Iran’s northern border, transport oil and gas from nations like Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright, speaking on Fox News, anticipated that the surge in oil prices would likely persist for “weeks, not months.” He emphasized Iran’s longstanding role in driving up energy prices and expressed the need to curtail its disruptive activities.
In response to the heightened oil prices, gas prices in the United States have climbed by an average of 34 cents per gallon in the past week, reaching $3.32 per gallon, equivalent to 120 cents per litre. In Canada, gas prices surged to 135.3 cents per litre following the commencement of airstrikes over the weekend, as reported by Gasbuddy.com. This represents an increase from the average price of 128.8 cents per litre a month earlier.
Gas wizard, a platform monitoring gas prices nationwide, forecasts a further rise in prices, projecting a potential increase to nearly 153 cents per litre on Saturday.