Oil and gas prices rise again amid Middle East unrest, pump prices likely to climb
Fuel prices at filling stations are likely to rise quickly after oil and gas markets jumped again Tuesday amid escalating violence and supply threats in the Middle East, developments that have already pushed up pump prices.
Current data show higher prices at the pump in the Netherlands. Consumer group UnitedConsumers said recommended prices from major oil companies are climbing. The advisory price for a liter of Euro95 gasoline is now 2.319 euros, up from 2.25 euros in early February. Diesel’s advisory price has risen to 2.187 euros per liter from 2.02 euros early last month. Those prices are typically charged at highway filling stations; elsewhere, prices are often lower.
Oil prices continued to rise Tuesday after Monday’s sharp gains. U.S. crude climbed 2.3 percent to 72.83 dollars a barrel, while Brent crude rose 3 percent to 79.98 dollars a barrel. On Monday, oil prices jumped nearly 8 percent as fears grew of severe supply disruptions from the Middle East.
The escalation includes Israeli strikes on targets linked to Hezbollah in Lebanon and Iranian attacks on energy facilities in Saudi Arabia and Qatar. Iran has also threatened to set fire to oil tankers attempting to pass through the Strait of Hormuz, a vital shipping route carrying about one-fifth of global oil transport and a large share of liquefied natural gas shipments. Iran says the strait has been fully closed, and reports say a drone attack targeted an oil tanker linked to the United States.
U.S. President Donald Trump said he would do “everything” necessary in the conflict with Iran. Secretary of State Marco Rubio said the United States will take action to limit the impact of rising oil prices, with plans to be presented Tuesday, including possible release of strategic oil reserves.
UnitedConsumers fuel expert Derk Foolen called the rising prices a “logical consequence.” “The price of crude oil forms a large part of the final fuel price. When oil becomes more expensive, you usually see that reflected in the advisory prices at the pump within a short time,” he said. Foolen added that fuel prices are slowly approaching the record levels of 2022, when advisory gasoline prices exceeded 2.50 euros per liter.
Gas prices in Europe also surged, extending Monday’s jump. Benchmark European gas prices rose 30 percent Tuesday morning on the Amsterdam exchange to 58 euros per megawatt-hour, after climbing 36 percent on Monday amid fears of major supply disruptions.
The rise follows Iranian attacks on Qatari energy facilities, which forced Qatar to halt liquefied natural gas production. Qatar is a key LNG supplier to Europe, and the duration of the shutdown is unknown. About one-fifth of the world’s LNG is shipped through the Strait of Hormuz.
European gas prices are now at their highest since early last year. Analysts at Goldman Sachs warned Monday that prices could more than double if shipping through the Strait of Hormuz is halted for a month.
The European Central Bank said a prolonged war in the Middle East could sharply increase inflation in the eurozone due to higher energy prices. China, a major buyer of oil and gas from the region, called on all parties to avoid disrupting the Strait of Hormuz and to protect shipping, emphasizing that energy security is critical to the global economy.