Gas Prices Could Rise as Middle East Conflict Disrupts Oil Supply

Crude oil prices jumped more than $1 per barrel Wednesday following military strikes between the U.S., Israel, and Iran that have disrupted Middle East oil production. The conflict has forced Iraq to slash output by 1.5 million barrels daily and effectively closed the critical Strait of Hormuz shipping route for four consecutive days.

Crude oil prices surged Wednesday as escalating military conflict in the Middle East threatens global energy supplies, potentially impacting gas prices for Delaware drivers in the coming weeks.

International Brent crude climbed $1.11 to reach $82.53 per barrel, marking a 1.4% increase, while U.S. crude futures gained 79 cents to $75.37 per barrel, representing a 1.1% jump. Both benchmarks closed Tuesday at their highest levels in months.

The price spike followed coordinated military strikes by Israeli and American forces against Iranian targets Tuesday, which triggered retaliatory Iranian attacks on energy facilities throughout a region responsible for nearly one-third of worldwide oil production.

Iraq, which ranks as the second-biggest oil producer within OPEC, has been forced to reduce daily output by approximately 1.5 million barrels – roughly half its normal production capacity – due to storage constraints and blocked export pathways, according to government officials who spoke with Reuters. These sources warned that Iraq might need to completely halt its 3 million barrel-per-day production within days unless export operations can restart.

Meanwhile, Iranian forces have targeted commercial oil tankers navigating the Strait of Hormuz, a vital waterway that handles about 20% of global oil and natural gas shipments. Maritime traffic through the strait has remained essentially blocked for four straight days after Iran attacked five vessels.

President Donald Trump’s announcement that the U.S. Navy might provide escort protection for oil tankers helped prevent even steeper price increases. Trump revealed he had directed the U.S. International Development Finance Corporation to offer political risk insurance and financial backing for Gulf maritime commerce.

However, shipping industry executives and market analysts expressed doubt about whether military protection and insurance assistance would be sufficient to restore market confidence.

Nations and corporations worldwide have started pursuing backup supply sources and alternate shipping routes. India and Indonesia announced they are actively seeking different energy suppliers, while several Chinese refineries have either suspended operations or accelerated scheduled maintenance work.

Saudi Arabia’s state oil company Aramco is working to redirect some shipments through Red Sea routes to bypass the blocked Strait of Hormuz, industry sources reported.

Domestically, U.S. crude inventories increased by 5.6 million barrels during the previous week, according to American Petroleum Institute data cited by market sources. This figure significantly exceeded analyst predictions of a 2.3 million barrel increase. Official government inventory numbers are scheduled for release later Wednesday.