Oil prices surge as Middle East war disrupts Strait of Hormuz shipping routes

Oil prices kept rising a week after major US and Israeli strikes on Iran. The attacks expanded into a wider Middle East war. Energy markets reacted to supply losses and shipping risks. Key routes and facilities faced damage and shutdowns. The result increased costs for fuel buyers and businesses worldwide.

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The conflict left oil tankers stuck in the Persian Gulf. Roughly 20 million barrels a day usually move there. Ships could not safely pass the Strait of Hormuz. Iran borders the strait’s northern side. With fewer safe voyages, supply tightened and traders priced in bigger risk.

Oil prices surge as Middle East conflict disrupts supply

Oil futures climbed past $90 a barrel on Friday. American crude settled at $90.90, up 36% in a week. Brent rose 27% over the week to $92.69. Damage and disruption at oil and gas sites interrupted supplies. That pushed up prices for petrol, diesel and jet fuel.

Energy costs rose as Iran carried out retaliatory strikes and the fighting spread. Reported attacks included a drone strike on the US Embassy in Saudi Arabia. Iran also hit a major refinery in Saudi Arabia. A liquefied natural gas LNG facility in Qatar also got hit. About 20% of global LNG supply went offline.

"We keep seeing news of vessels being hit or refineries or pipelines, so the list is very long,\" Galimberti said. \"As a result, roughly 9 million barrels of oil per day are off the market because of facilities being hit or producers taking precautionary measures,\" he said. \"Right now, with all of this shut in, we are in a situation of extreme deficit.\"

Gasoline prices surge as oil prices surge in global markets

In the US, regular petrol reached $3.32 a gallon on Friday, AAA said. That was 11% higher than a week earlier. Diesel hit $4.33 a gallon, up 15% over the week. In Europe and Asia, the shock was stronger due to higher reliance. Diesel doubled in Europe, and jet fuel rose close to 200% in Asia.

Some drivers said higher pump prices were already hurting. \"Its crazy. Its not needed, especially at a time when people are already struggling, but not unexpected from all this turmoil thats going on,\" said Mark Doran. \"I dont think theres been an end in sight to any Middle East conflict thats been started by us, so the fact that they say that theres going to be an end that quickly is not believable, and the Middle East is, you know, a place that the US is not going to solve.\"

US operations against Iran signal prolonged oil prices surge risk

On Monday, President Donald Trump said US military operations against Iran may last four to five weeks. Trump also said the US could continue far longer. On Friday, Trump appeared to dismiss talks without Iran’s unconditional surrender. Analysts said those signals raised the chance of a longer disruption. \"The more news we get, the more it seems like this is going to last a really long time,\" said Al Salazar.

Analysts said the US export position does not shield it from global price swings. Oil trades in international markets, so US barrels also rose in value. Producers also cannot add supply quickly. \"And for many American oil producers, if you put more wells in the ground, theres about a six-month lag before you get that production uplift,\" Salazar said.

US refineries also limit how much extra petrol can be made from domestic crude. Much US output is light, sweet crude. Refineries on the East and West coasts mainly handle heavier, sour crude. That mismatch means the US exports some crude. It also imports some refined products, including petrol.

Some motorists said they prepared early for higher prices. Jerry Dalpiaz of Covington, Louisiana, said he filled vehicles and fuel cans when US action began. \"I can weather the storm because Im in good financial position, but I feel sorry for my fellow citizens who are living paycheck to paycheck because they have to drive to get to work and they have to change their oil and all those things,\" Dalpiaz said. \"And they need some relief and it doesnt seem to be coming anytime soon.\"

Strait of Hormuz risks keep oil prices surge fears elevated

Trump issued a plan on Friday to insure losses up to about $20 billion in the Gulf region. The aim was to rebuild trust in maritime trade and steady commerce. Some experts said insurance alone cannot remove the main threat. \"The problem is that in the oil trading, oil shipping world, people are worried about counterterrorism,\" said Amy Jaffe.

Jaffe said shippers feared multiple attack methods in the region. Jaffe listed drone speedboats, armed flying drones, and mines. Analysts said reopening the Strait of Hormuz safely needs credible security steps. Salazar questioned what stability would look like after any reopening. \"All it takes is one individual with a RPG rocket-propelled grenade to stand on the shore and take out a tanker, right?\" Salazar said. \"And this is forever, do you know what I mean?\"

With key facilities hit and shipping constrained, fuel markets stayed under strain. Oil prices rose sharply within a week and fed into higher transport costs. Officials outlined insurance support for Gulf trade, but analysts highlighted security fears. Until safe movement through the Strait of Hormuz improves, traders and consumers faced continued pressure.

With inputs from PTI