The rise in oil prices directly affects fuel costs and inflation — the current spike is linked to risks for a key supply route.
Global oil prices surged sharply during trading on Thursday amid fears that exports through the Strait of Hormuz would not resume in the near future. Investors are pricing in the risk of supply shortages.
Brent crude for June delivery rose by about 7% to $126 per barrel. American oil WTI gained more than 3% and reached around $110.
The reason is the situation surrounding the Strait of Hormuz, one of the world's main oil corridors. Two months ago, following the outbreak of military actions by the U.S. and Israel, Iran blocked this route. Prior to that, about 20% of the world's crude oil exports passed through the strait.
This is a critical point for the market: any restrictions here quickly reflect on prices worldwide. The increase could already affect fuel costs, logistics, and consequently, prices for consumers.
Such price spikes have previously occurred during geopolitical crises; however, the current situation differs in scale — it concerns a prolonged blockade of one of the key routes.
If supplies do not resume, pressure on prices may persist in the coming weeks.
