U.S. crude oil prices surged above $90 per barrel on Friday, marking the highest level in over 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 just a week ago. This surge was influenced by the recent conflict initiated by the U.S. and Israel against Iran and its affiliated groups.
The ongoing conflict in Iran and the looming threat of potential drone or missile attacks from Iran have led to the closure of almost all tanker traffic passing through the vital Strait of Hormuz. This waterway, situated at the exit of the Persian Gulf, facilitates 20 percent of the global oil supply. Tankers navigating through this strait, which is adjacent to Iran in the north, transport oil and gas from countries like Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
U.S. Energy Secretary Chris Wright, speaking to Fox News, anticipated that the price escalation would persist for “weeks, not months.” He highlighted Iran’s historical role in driving up energy prices and expressed the need to curb their disruptive activities. As a result of these developments, gas prices in the U.S. have surged by an average of 34 cents per gallon, reaching $3.32, equivalent to 120 cents per liter.
Following the commencement of airstrikes last weekend, gas prices in Canada have also risen, with reports indicating a price of 135.3 cents per liter, up from an average of 128.8 cents a month earlier. Gas wizard, a platform monitoring gas prices nationally, forecasts that the price per liter could climb to nearly 153 cents on Saturday.