Crude spikes and rising fuel costs reflect global supply concerns tied to ongoing conflict and key shipping routes.
By yourNEWS Media Newsroom
Global oil prices surged sharply as concerns intensified over a prolonged conflict involving Iran, pushing U.S. fuel costs higher and lifting the national average price of gasoline above $4 per gallon.
Benchmark U.S. crude climbed 11.4% to $111.54 per barrel, while Brent crude, the international benchmark, rose 7.8% to $109.03 per barrel. The increase reflects growing fears that disruptions tied to the conflict could impact global supply chains.
Gasoline prices followed suit, with the national average reaching $4.09 per gallon, surpassing a level often associated with reduced consumer spending. Prices have risen $1.11 per gallon since the start of the conflict, compared to $2.98 per gallon on Feb. 28, when U.S. and Israeli strikes on Iran began.
Although current prices remain below the June 2022 peak of approximately $5.02 per gallon, they are still significantly higher than pre-pandemic levels, when gas typically ranged from $2.50 to $3.00 per gallon.
Analysts pointed to potential long-term risks tied to the conflict’s impact on infrastructure and transportation routes. “A more extended conflict raises the threat to physical infrastructure, extends disruptions through the Strait of Hormuz, and will entail a longer post-war recovery period, with price impacts spilling over later into the year,” according to a report from BMI, a unit of Fitch Solutions.
While the United States imports only a portion of its oil from the Persian Gulf, global pricing mechanisms mean supply disruptions in the region can influence prices worldwide.
The impact is more pronounced in Asia, where several countries rely heavily on oil shipments passing through the Strait of Hormuz. Japan, for example, depends on the route for a significant share of its imports and may need to consider alternative supply pathways if disruptions persist. Some analysts said regional governments are anticipating potential agreements with Iran to maintain shipping access.
Asian markets reacted with mixed results in limited trading due to Good Friday closures in several countries. Japan’s Nikkei 225 rose 0.9% to 52,938.62, and South Korea’s Kospi advanced 2.1% to 5,344.41. In contrast, China’s Shanghai Composite declined 0.5% to 3,899.57. Markets in Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia, and India were closed.
In the United States, financial markets were also closed Friday, though major indexes posted gains earlier in the week despite volatility tied to energy prices. The S&P 500 rose 0.1% to 6,582.69, finishing the week up 3.4%. The Dow Jones Industrial Average slipped 0.1% to 46,504.67, while the Nasdaq composite gained 0.2% to 21,879.18. Both indexes recorded weekly increases.
Bond markets remained relatively stable, with the yield on the 10-year Treasury easing to 4.30% from 4.32%.
Currency markets showed modest movement, with the U.S. dollar rising to 159.66 Japanese yen from 159.53 yen. The euro edged slightly lower to $1.1535.
The rise in energy prices follows remarks from President Donald Trump earlier in the week indicating continued military action, contributing to uncertainty over the duration of the conflict and its broader economic effects.
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