Oil Prices Surge to Four-Year Highs Amid US-Iran War and Strait of Hormuz Standoff

U.S. crude climbing above $109 per barrel. The increases followed reports that President Trump would review new military options against Iran amid stalled talks and Iran's restrictions on the Strait of Hormuz, through which a fifth of the world's crude oil passes.

Multiple sources confirmed the price jumps, attributing them directly to the ongoing US-Iran war that began in late February. Gasoline prices in the United States also rose with California surpassing $6 per gallon for the first time since 2023. 50 per gallon in coming weeks.

The White House held meetings with Chevron and oil traders to address shrinking supplies.

75% on Thursday, citing uncertainty from the Iran war and its impact on energy prices. Policymakers signaled readiness to raise rates if the energy shock persists, as inflation measures jumped to three-year highs in March due to soaring gas costs. The decision reflected assessments of potential longer-term economic damage from prolonged disruptions.

Similarly, the Federal Reserve held interest rates steady on Wednesday in a split 8-4 vote, marking its third consecutive meeting without changes. The decision came amid higher energy costs and disagreements among officials. S. 30-year Treasury yield hit 5% for the first time since July 2025, following pushback from three Fed dissenters against easing guidance.

U.S. Central Command for short and powerful attacks. Secretary of Defense Pete Hegseth faced congressional questioning on the war's costs, estimated at $25 billion so far, and declined to specify its duration. Dan Caine appeared before the House Armed Services Committee, stressing needs for more drones, missile defenses, and warships.

“So wish fulfillment is not really a strategy. " — Rep. S. blockade of Iranian ports and ships was doomed to fail, while President Trump maintained it would force Iran to accept peace terms. A key Iranian leader mocked the Trump administration, predicting oil prices would reach $140 per barrel.”

U.S. inflation gauge rose to its highest level in three years in March, driven by the war's effects on gas prices. The Bank of England and European Central Bank noted warnings of prolonged energy shocks affecting global economies. 55 per pound, unrelated to the war, prompting shifts in demand to other meats.

5 trillion. Hegseth battled with lawmakers, including Democrats and some Republicans, over the war's toll on lives, dollars, and weapon stockpiles.

U.S. approach, stating Germany and Europe were suffering from the Strait of Hormuz closure. President Trump responded by accusing Merz of accepting Iran's potential nuclear weapon possession. S. S. forces in the Middle East. S. operations against Iran.

Separately, Israeli forces intercepted a pro-Palestinian flotilla off Greece, detaining 175 activists from 22 vessels en route to Gaza. S. blockade has led to tanker gridlock, pushing oil prices from around $70 per barrel before the war to current levels.

California refineries are maximizing jet fuel production while gasoline supplies tighten, exacerbating local price premiums. Russia scaled back its May 9 Victory Day parade due to fears of Ukrainian drone attacks, featuring no military hardware for the first time since 2008.

The Federal Reserve confirmed Jerome Powell will remain on the board after his term as chair ends, denying President Trump a vacancy. Forbes reported that incoming Fed boss Kevin Warsh is expected to overhaul the institution. In unrelated news, Manchester United midfielder Kobbie Mainoo signed a new contract until 2031, increasing his wages from £25,000 to £150,000 per week.

Mainoo, recently recalled to England's team, expressed commitment to the club.

“Kobbie is one of the most naturally gifted young footballers in the world. " — Jason Wilcox, Manchester United technical director (GB News). President Trump hosted the Artemis II crew at the White House following their lunar flyby mission.”