U.S. crude oil prices climbed above $90 per barrel on Friday, marking the first time in more than two years. This sharp increase comes from just under $73 a week earlier, triggered by escalating military actions between the U.S., Israel, and Iran along with its proxies.
Strait of Hormuz Disruption Threatens Global Supply
The expanding conflict raises fears of Iranian drone or missile strikes, halting nearly all tanker traffic through the Strait of Hormuz. This vital waterway serves as the sole maritime exit from the Persian Gulf, channeling about 20 percent of the world’s oil requirements. Tankers navigating the strait, bordered by Iran to the north, transport oil and gas from key producers including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran itself.
U.S. Energy Secretary Addresses Price Outlook
U.S. Energy Secretary Chris Wright stated that the surge in prices should endure for weeks, not months. “Look, Iran has been an escalator of energy prices for 47 years, the whole history of their regime,” Wright remarked. “We’ve got a little bit of an interruption right now, to finally put an end to their ability to wreak havoc, to kill Americans, and to terrorize their neighbours.”
Gas Prices Spike Across North America
In the U.S., average gas prices jumped 34 cents per gallon over the past week, reaching $3.32, equivalent to about 120 cents per litre. Canadian pump prices followed suit, climbing to 135.3 cents per litre in the wake of initial airstrikes last weekend, up from 128.8 cents a month prior, based on tracking data. Price monitoring services forecast averages nearing 153 cents per litre by Saturday.
