Oil prices are teetering around $100 per barrel.
The price for a barrel of Brent crude surged to as high $119.50 per barrel, according to The Associated Press, and has since dropped to around $94.
It’s the highest mark in four years and 65% higher than when the war started.
President Donald Trump called it a “very small price to pay” for destroying Iran’s nuclear threat on social media.
Strait of Hormuz
A major factor contributing to the significant impact of the war on oil and gas markets is the difficulty Middle Eastern energy exports face in navigating essential shipping routes, according to Barron’s.
The Strait of Hormuz, a critical passage for 20% of the world’s daily oil and gas supply, is effectively obstructed.
Tankers that would otherwise be traveling through the strait are concerned about Iranian missile and drone strikes, according to Fox Business.
Energy Secretary Chris Wright told CNN that ship traffic would return to normal within the next few weeks.
Other implications
Oil prices peaked at close to $150 a barrel in 2008, according to Barron’s.
Some say prices could continue to climb.
According to CNN, Homayoun Falakshahi, lead crude research analyst at Kpler, says oil could rise to $150 per barrel by the end of the month. Meanwhile, Andrew Addison, proprietor of The Institutional View research service, posits that the price could reach $200 or even $240 per barrel, as reported by Barron’s.
The Associated Press reported that the Group of Seven major nations have discussed but ultimately decided not to use their emergency oil stockpiles at this point in time.
“There is not an oil shortage,” Trump wrote on social media. “Prices will drop again soon.”
For gas, the national average sits at $3.47 a gallon after being reported at $3.32 on Friday and $2.98 the week prior, according to AAA.