Oil Futures Skyrocket as Iran Moves to Close Off Persian Gulf

[Yo_Mama_Been_Loggin]

Oil futures spiked Sunday evening following the U.S. attack on Iran, after which the Iranian government voted to block shipping from the Persian Gulf by closing the Straight of Hormuz.

U.S. oil futures jumped 2.7% to about $75.80 per barrel at 9:30 pm ET Sunday night, opening Monday morning at $78 per barrel, a three month high. Brent crude oil futures, the international benchmark for oil prices, increased 2.44%, hitting $78.88 per barrel.

More than 25% of oil shipped globally passed through the Straight of Hormuz in 2024 and the first quarter of 2025. The U.S. imports roughly half a million barrels a day through the Straight. A disruption in oil shipments from the Persian Gulf will likely cause inflation to spike in the U.S. due to increased prices at the pump, right in time for summer driving season.

The price of gas typically rises by 2.4 cents per gallon when crude oil prices rise by $1, according to the Energy Information Administration, meaning a gain of over 20 cents per gallon at current levels for oil futures.

https://meidasnews.com/news/oil-futures-skyrocket-as-iran-moves-to-close-off-persian-gulf

[tritsofme]

1. 15 hours is an eternity for news like this.

It was a busy day in the market.

[FBaggins]

2. Aged like milk

[Silent Type]

3. Fortunately, it didn't happen. Not sure why, though. Stock futures are up for tomorrow.

[BlueSpot]

4. The WTI (US) price has since retreated to $66/bbl

http://oilprice.com/

This is a live web site so the link is dynamic. The prices shown will change in close to real time.

I went and filled up today, thinking I was probably too late but prices were only up by about a nickel. Probably will be lower tomorrow. And this is exactly why I don't play the futures market!

[dem4decades]

5. It said oil prices crashed because Trump announced a cease-fire

What will prices do if there's not really a cease fire?

[BlueSpot]

8. What is "it"?

It did not say that in the original story which was about a spike. So apparently there is a new "it" in town.

The price crashed almost immediately. Well before the orange menace announced a cease fire.

What will happen if it is bullshit? Definitely potential there for an upswing in prices. We get a lot of our crude from the Middle East because, somewhat ironically, a fair number of our refineries are not designed to process the shale oil we produce domestically.

[dem4decades]

9. The site you linked to was the 'it".

[BlueSpot]

10. Oh. Oops. LOL

I wasn't thinking about any of the stories that might have been showing on the site. I was just trying to share a link to (almost) current prices (in the upper left of that page).

As I would have probably done with someone else's link, you went for the story. The difference in our thinking processes led to my puzzlement. Sorry about that.

[dem4decades]

11. No problem, these are difficult times, and I enjoyed (sort of) the link.

[Melon]

6. Oil was down 2.5% this morning. Down 7.5% midday and more I believe after the cease fire.

[lindysalsagal]

7. I'd be willing to pay double gas prices to prove to maga that the gop are collaborators.

Magas are too stupid to understand anything else, like epidemics or world wars. Only gas prices register in their neanderthal little brains.

[Ping Tung]

12. Oil and gas prices are considered to be necessary collateral damage in Trump's war.

Whereas, the demand for more troops and killing machines are seen as economic growth.