Oil Futures Skyrocket as Iran Moves to Close Off Persian Gulf [View all]
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.
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