New attacks on crude oil tankers trying to slip through the Strait of Hormuz heightened the world’s growing energy crisis as Iran refused to an unconditional surrender called by President Donald Trump. It resulted in a nearly 5% gain of crude oil prices.
The attacks on three more ships only increased fears of worsened supply disruption. Reuters reported it brought the number of ships struck in the region to at least 14 since the Iran war began.
Shipping along the narrow strait has come to a near standstill since the United States and Israel began strikes on Iran on February 28, preventing exports of around a fifth of the world’s oil supply and sending global oil prices surging to highs not seen since 2022. Some observers also responded to the International Energy Agency’s proposal for a record release of oil reserves by calling it “inadequate.”
Brent crude, the global benchmark went up $4.18 or 4.8% to settle at $91.98 a barrel, this after soaring earlier in the week to $119.50 a barrel.
West Texas Intermediate in the U.S. rose $3.80 or 4.6% and finished the day’s trading at $87.25 a barrel on the New York Mercantile Exchange.
The impact on gasoline prices is being felt as the U.S. average, according to AAA rose 4 cents since Tuesday to reach $3.57 per gallon. The nationwide average for diesel fuel gained 5 cents at $4.83 per gallon.
Oklahoma’s gasoline average went up 2 cents to $3.03 and the average price of diesel fuel rose 5 cents to $4.83 per gallon. The average gasoline price in Oklahoma City was unchanged at $3.04 but diesel fuel increased 2 cents to $4.03. Gasoline prices in Tulsa rose 11 cents from Tuesday to reach $3.13 per gallon while diesel fuel increased a penny to reach $4.29.
Natural gas prices also made gains on Wednesday, finishing at $3.19 MMBtu with a gain of $0.180 or 5.96%.
Oklahoma energy stocks made gains on Wednesday including a 6% boost for LSB Industries and 4% increases for Devon Energy and Ovintiv Inc.