U.S. crude oil prices surged past $90 per barrel on Friday, marking a milestone not seen in over two years. The West Texas Intermediate (WTI) crude, a key indicator for oil pricing in North America, closed the day slightly above $91, a significant increase from the previous week’s level of about $67. This rise coincided with the recent initiation of military actions by the U.S. and Israel against Iran and its affiliates.
The escalating conflict in Iran and the looming threat of potential drone or missile attacks from Iran have led to the near-complete cessation of tanker operations through the vital maritime pathway, the Strait of Hormuz. This narrow strait, positioned north of Iran, serves as the primary route for oil and gas transportation from major exporters in the region such as Saudi Arabia, Kuwait, Iraq, and others, accounting for a substantial portion of the global oil trade.
Speaking on Fox News, U.S. Energy Secretary Chris Wright anticipated that the current spike in oil prices might persist for “weeks, not months.” He underscored Iran’s longstanding role in driving energy costs higher and emphasized the need to curtail their disruptive activities.
In response to these developments, gasoline 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, following the recent military actions, gas prices surged to 135.3 cents per litre from 128.8 cents a month earlier, according to Gasbuddy.com. Gas wizard, a platform monitoring fuel prices nationwide, predicts a potential increase to nearly 153 cents per litre by Saturday.