Shell gasoline prices have surged above $3 per gallon, driven by a de facto closure of the Strait of Hormuz. The strategic waterway, controlling 20% of global oil shipments, is now under Iranian naval control, causing tanker traffic to collapse and sending Brent crude prices soaring 4.7% to $81.40 a barrel.
Oil prices are climbing rapidly due to a near-total halt of maritime traffic through the Strait of Hormuz. The passage off Iran’s southern coast, which carries about 20% of the world’s oil, has been effectively shut since recent U.S.-Israeli strikes on Iran began.
Shell gasoline price today is already reflecting the damage, with Brent crude settling at $81.40 a barrel on Tuesday, up 4.7% in a single session. Oil and gas prices have also surged across Europe and Asia.
On a normal day, around 80 tankers cross the strait, but on Monday only two did. Dan Pickering, chief investment officer of Pickering Energy Partners, stated: “It’s a de facto closure. You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”
Iran has been direct about the closure. IRGC Navy official Mohammad Akbarzadeh said: “Currently, the Strait of Hormuz is under the complete control of the Islamic Republic’s Navy.” The energy output collapse is regional, with Qatar halting LNG production and Saudi Arabia suspending output at its largest refinery.
Shell gasoline and other U.S. fuel costs crossed $3 per gallon for the first time since November. In response to the crisis, President Trump said the U.S. Navy would begin escorting oil tankers through the strait “if necessary,” also announcing political risk insurance for shipping lines. More than 80% of the oil and gas moving through the strait goes to Asia, with China, India, Japan, and South Korea as the leading destinations.
