Gas Prices Soar as Middle East Tensions Spike

The market stayed calm on Wednesday, even though hostilities between Iran and Israel—along with strikes against U. S. allies—continued to flare. Traders around the globe kept a close eye on the Strait of Hormuz, a narrow channel that links the world’s top oil producers to buyers. This passage carries about 20 % of global oil and a sizeable share of natural gas. Because ships could be targeted, traffic in the strait has largely stopped. U. S. forces reported striking 16 Iranian vessels that were laying mines near the waterway. Officials in Washington have hinted at escorting commercial ships to reduce danger. Gasoline prices climbed for the 11th straight day, reaching an average of $3. 58 per gallon across the country—a rise that adds roughly 20 % to a driver’s bill. Diesel costs have jumped even faster, now at $4. 83 per gallon, up 28 % since the conflict began. Oil prices also climbed, with Brent crude trading near $91 per barrel and U. S. West Texas Intermediate around $87.Oil markets have been volatile since the U. S. and Israel struck Iran on Feb. 28. Brent briefly surged to nearly $120 a barrel as fears of supply cuts grew, but fell sharply after President Trump said the war was “very far ahead of schedule. ” Asian stocks, which import large amounts of oil and gas, edged higher for a second day. Japan’s and South Korea’s main indices rose about 1 %, while Taiwan’s jumped 4. 1 %. European shares fell, with the Stoxx 600 slipping just under 1 %. U. S. futures for the S&P 500 stayed flat; the index ended Tuesday slightly lower, after a brief lift when an energy secretary posted about a successful tanker escort that was later retracted.