Iran Conflict Sends Oil Prices Soaring Amid Fears of Strait Disruption
The recent US-Israeli attack on Iran has sent oil prices surging, threatening to push up gasoline prices within days. Industry analysts told ABC News that Brent crude prices jumped over 6% on Monday, reaching around $77 per barrel.
This marks the highest level since last June and comes amid fears of a prolonged disruption to the Strait of Hormuz, a critical trading route for global oil supply. The strait facilitates the transport of about one-fifth of global oil supply, with 20 million barrels passing through daily on average in 2024.
Experts warn that if the Iran war continues, oil prices could soar above $100 over the coming days or weeks, potentially rising even higher if any destruction of oil infrastructure or transit routes appears long-lasting. Patrick De Haan, head of petroleum analysis at GasBuddy, said gasoline prices are likely to face heightened upward pressure as seasonal trends continue and markets navigate this evolving geopolitical landscape.
De Haan added that the national average price for a gallon of gas is poised to reach $3 per gallon for the first time this year. Analysts differed over the extent of potential price increases, with some predicting prices could hit $100 or even $150 if the war lasts 'until the end of the month'.