Oil tops $100 as global supply disruptions push U.S. fuel prices higher
Concerns about the global oil supply are growing as disruptions in the Middle East and Russia put additional pressure on energy prices.
(NBC)- Concerns about the global oil supply are growing as disruptions in the Middle East and Russia put additional pressure on energy prices.
Oil traded around $105 a barrel Monday after attacks forced Saudi Arabia to temporarily shut down its critical East-West Pipeline. The route has become increasingly important as instability has disrupted shipping through the Strait of Hormuz.
Adding to supply concerns, Iran-aligned Houthi rebels have launched additional attacks on Saudi targets and seized Perim Island near the entrance to the Red Sea, according to Reuters.
“We’re going to keep on monitoring it and making sure that Americans’ best interests are represented,” Vice President JD Vance said.
The Russia-Ukraine war is also contributing to pressure on global fuel supplies. Ukrainian drone attacks have disrupted operations at several major Russian refineries, contributing to a global diesel shortage and higher prices.
President Donald Trump said Ukrainian President Volodymyr Zelenskyy had agreed to stop targeting Russian energy facilities. Zelenskyy, however, said Ukraine would support an energy ceasefire only if the United States could verify that Russia was also committed to halting attacks.
Diesel prices in the United States have reached record levels amid the global supply crunch.
Regular gasoline prices are also climbing. AAA reported a national average of about $4.33 per gallon Monday, with California averaging just over $6 per gallon.
Inside Iran, the U.S. blockade has contributed to long lines for gasoline as the broader conflict continues to disrupt energy supplies.
Trump said Iran has been contacting the United States seeking a deal, saying, “Iran wants to make a deal so badly. They are calling constantly. They want to make a deal.”
The continued instability across several major energy-producing regions is keeping pressure on global oil and fuel markets.
