Brent crude oil prices spiked above $126 per barrel overnight before settling near $114 by 8 a.m. Eastern on April 30, marking the highest level since the Iran war began [1]. West Texas Intermediate crude traded around $104 per barrel at the same time [1].
The U.S. average price for regular gasoline jumped to $4.30 per gallon on Thursday morning, a rise of more than 7 cents from Wednesday and significantly higher than the $3.18 average a year earlier [1]. Analysts at ING, Warren Patter and Ewa Manthey, said, "The oil market has moved from over-optimism to the reality of the supply disruption we are seeing in the Persian Gulf" [1]. They added the stalemate in U.S.-Iran negotiations and President Trump rejecting Iran's latest offer on navigation through the Strait of Hormuz has caused the market to lose hope for a quick resumption of flows.
The price surge reflects concerns over a possible prolonged disruption of oil shipments through the Strait of Hormuz amid the ongoing conflict in Iran [1]. U.S. officials are reportedly trying to build an international coalition to maintain navigation through the critical waterway, though these efforts remain uncertain [1].
President Trump was scheduled to receive a briefing on April 30 regarding new plans for potential military action in Iran as tensions escalate [1].
The immediate focus remains on whether the U.S. and its allies can secure safe passage in the Strait of Hormuz, which is a key shipping route for global oil supplies. Gasoline prices in the U.S. are expected to remain elevated as these disruptions persist.