All articles tagged with #oil market
The latest U.S. inflation report shows a 0.9% monthly rise in March and 3.3% year-over-year, driven by a surge in energy costs tied to the Iran conflict. Core inflation held steady, but economists warn relief may be slow as oil disruptions ripple through prices, complicating the administration's economic messaging ahead of midterm campaigns.
After weeks of absorbing a record supply shock from the Strait of Hormuz, the oil market's buffers are largely exhausted, leaving the system fragile with constrained spare capacity and falling inventories; further disruptions could trigger disproportionate price moves, especially as European refiners compete with Asia for Atlantic Basin barrels, according to Rystad Energy.
US gasoline prices have surged amid tensions over Iran, fueling a notable uptick in interest in electric vehicles as buyers seek cheaper, more predictable transport costs; EV searches are up about 20%, and used EVs are becoming more affordable, though analysts warn whether the trend will endure amid policy shifts, infrastructure limits, and the US’s comparatively slow EV adoption.
Gas prices have jumped roughly 30% nationally in weeks since the U.S.-Iran conflict, squeezing workers who drive for pay (e.g., a DoorDash driver in Georgia reporting extra fuel costs) while oil supplies tighten and diesel costs rise. Economists warn that if the war drags on without an off-ramp, inflation could accelerate and job growth slow, prompting some workers to seek cheaper commutes and businesses to absorb higher fuel costs.
Gas prices have climbed across the United States since late February as Iran-war–related disruptions to the Strait of Hormuz affect global oil flow, with AAA data showing an average 31% rise in the past month. A 20-state ranking shows New Mexico at the top (+45% to about $3.79/gal), followed by Kentucky, Oklahoma, Louisiana, Arizona and others, all posting large increases and many counties hitting local highs near or above $4 per gallon. All states are now above $3 per gallon.
The Iran war is driving a sharp surge in U.S. gasoline prices, with many Americans likely paying over $4/gal. The White House says disruptions will be brief and prices will drop once objectives are achieved, but analysts warn relief could take weeks to months and a prolonged Hormuz closure could push costs higher. To ease the pain, the administration is tapping strategic reserves and suspending the Jones Act, while public opinion shows concern over price spikes and mixed views on how the administration is handling Iran.
Rising diesel prices driven by the Iran-related oil market disruption and Strait of Hormuz tensions are hitting Farmington-based Leonard’s Express, where fuel is the top expense for its 500-truck fleet. The company has been absorbing much of the volatility while partially passing costs to customers, dodging price swings only weekly as DOE reports come out, and worrying about cash flow and broader effects on shipping and consumer demand. The spike underscores how fuel costs ripple through the trucking industry and the economy until oil markets stabilize.
Live updates show the US redeploying about 2,000 Marines from Okinawa to the Middle East aboard the Tripoli as Washington expands its regional footprint; Britain mulls mine-hunting drones to help reopen the Strait of Hormuz, while Japan and Australia say they won’t send ships; Japan begins releasing strategic oil reserves; Israel says it still has thousands of targets in Iran as Trump seeks a coalition to secure Hormuz, and oil prices rise amid supply fears.
Trump says a coalition of countries will deploy warships with the United States to keep the Strait of Hormuz open after Iranian attacks disrupt shipping; the U.S. has sent the amphibious USS Tripoli with a Marine unit, and conducted a large strike on Kharg Island to target mine storage and missile facilities, signaling it will continue actions if Iran escalates—aiming to restore open shipping and stabilize oil markets, with possible follow-on operations against land-based missiles.
Facing potential disruptions from Iran closing the Strait of Hormuz, the U.S. Strategic Petroleum Reserve stands at about 415 million barrels (roughly 58% of capacity). The administration announced a plan to release 172 million barrels—around 40% of SPR—to help stabilize prices, a drawdown of about 1.2 million barrels per day. Even with the release, analysts warn it won’t fully offset a prolonged loss of roughly 12 million barrels per day of global supply. Restocking would require substantial funding and could take years; the SPR must maintain a buffer around 150 million barrels for flexibility.
Trump aides warn that Iran's moves to disrupt the Strait of Hormuz could lengthen the conflict and drive oil prices higher, complicating his objectives; in response, Trump released a record emergency oil reserve stockpile and is weighing naval escorts and tanker insurance as two Gulf tankers were attacked, with oil briefly topping $100 a barrel. Iran aims to pressure the U.S. and Israel to halt bombing, while domestic support for the war remains low and Trump bets prices will fall after the conflict ends.
Oil prices eased after Trump signaled a possible wind-down of the Hormuz crisis, while Gulf producers cut output to relieve bottlenecks at the chokepoint, signaling cautious optimism in energy markets.
Aramco warned of catastrophic consequences for global oil markets if the Hormuz Strait disruption continues, saying it can supply about 70% of normal crude by routing via Yanbu while about 5 million barrels per day would reach international buyers and 2 million stay for domestic refineries. The blockade has tightened supply and helped push Brent toward $119 a barrel, prompting G7 and IEA discussions on emergency stockpiles, though no release has been approved; authorities note large remaining inventories could cushion a longer disruption.
The national average price for unleaded gas rose to about $3.54 per gallon, the highest since mid-2024, up about 21% in a month as the U.S.-Iran war disrupts global oil trade and the Hormuz chokepoint, with volatility likely to persist depending on crude prices and disruption duration.
President Trump spoke with Russian President Vladimir Putin for about an hour to discuss the Iran war; Putin described the talk as frank and businesslike and offered ideas for a quick political and diplomatic settlement, with the conversation also touching on Venezuela and the global oil market, and emphasizing Russia’s role as a reliable energy supplier and the possibility of diverting gas to other markets if European buyers change course.