While the price of crude oil has stabilized, motorists are still feeling the pinch at petrol stations due to ongoing disruptions in the global supply chain.
Drivers are facing a steep rise in fuel costs. In the United States, the average petrol price has climbed to around $4 per gallon, marking a 30% increase since the US and Israel initiated military action against Iran last month.
Diesel prices have jumped by 40%, reaching $5 per gallon. Because diesel powers trucks and trains that transport goods, this increase is expected to ripple through the broader economy.
Oil prices leveled off after former President Donald Trump signaled his willingness to end the conflict, even with the Strait of Hormuz still closed.
However, experts warn that any U.S. ground offensive or broader Iranian countermeasures could drive crude prices to levels not seen since July 2008, when Brent crude approached $150 per barrel.
The main source of tension remains maritime traffic in the Strait of Hormuz, through which about 20% of the world’s oil supply normally passes.
Washington has stated that it retains multiple options to respond, after Iran effectively began charging ships a fee for transit through the strait.