Overview
- Iran’s near-closure of the Strait of Hormuz has cut a major share of seaborne oil flows, pushing crude above $100 a barrel with a reported 12% one-day jump to about $111.
- Drivers are paying sharply more at the pump, with US gasoline averaging about $4.09 and diesel $5.53 per gallon, UK petrol around 148.8p and diesel 176.5p per litre, and Australian unleaded topping A$2.50 in many areas.
- Companies are passing on fuel costs, with Amazon adding a 3.5% surcharge for marketplace sellers from April 17, the US Postal Service seeking an 8% package fee from April 26 through January 2027, and airlines lifting baggage charges.
- Australian authorities are tightening market oversight, with NSW funding upgrades to its FuelCheck system and WA requiring all stations to report prices to FuelWatch by May with higher fines, alongside a federal move to halve fuel excise.
- The fallout is expected to last for months as analysts warn of a long tail, with Europe facing possible shortages by mid‑April, California risks later due to shipping lags, and US motorists already paying an estimated $8.4 billion extra since late February.