The price of crude oil has risen to its highest level since May as renewed attacks in the Strait of Hormuz intensify concerns over energy supplies. A barrel of North Sea Brent crude cost $108 on Thursday, equivalent to about €93, compared with around $70 before the Iran war began in February.
Although the latest increase has pushed oil firmly above the $100-a-barrel mark, prices remain below the annual high of about $126 reached at the end of April. Oil prices surged at that time after the United States and Israel began the war against Iran, before falling again from May onwards. On Wednesday, Brent crude once again moved above $100 a barrel.
The renewed rise is also being felt directly by consumers in the United States. According to the GasBuddy portal, the average diesel price in the country has risen above $6 a gallon for the first time, equivalent to about €1.36 per litre. That is approximately $2.30 a gallon higher than the level recorded a year earlier.
US diesel inventories are also under pressure. According to the Energy Information Administration, stocks are around 13 per cent below their five-year average, adding to concerns surrounding fuel supplies as the conflict continues.
The Strait of Hormuz has emerged as the central point of confrontation between the United States and Iran. Two more ships were attacked in the waterway overnight, according to the United Kingdom Maritime Trade Operations agency, or UKMTO. The incident occurred about seven kilometres west of Khasab, an Omani town near the strategically important strait.
The renewed attacks have added to an already tense energy market, with the continuing conflict between Washington and Tehran creating uncertainty over the future direction of oil prices. The latest rise demonstrates how developments around the Strait of Hormuz can quickly translate into higher crude and fuel costs.
The consequences are also extending beyond the energy sector. Higher oil prices tend to push up the cost of petrol and heating with oil and gas, affecting broader price trends. Germany’s Federal Statistical Office said on Thursday that elevated oil prices were also driving inflation higher in Germany.
German motorists have already faced rising fuel costs. At the beginning of the month, petrol prices in Germany reached a record level, further illustrating the wider impact of the energy-price surge.
There is little indication that the pressure on oil markets will ease soon. The war between the United States and Iran shows no sign of ending, leaving the Strait of Hormuz at the centre of continuing uncertainty over global energy prices.
US President Donald Trump has said the higher oil prices are unlikely to fall until after the midterm elections. With the conflict continuing and further attacks reported in the strategic waterway, energy markets remain exposed to renewed escalation.
