Overview
- The war that began on February 28 pushed crude and fuel prices higher and raised market volatility by disrupting Middle East exports through the Strait of Hormuz.
- Price moves eased about 2–3% into the mid‑$90s per barrel on June 5–6 after reports of an Israel–Lebanon ceasefire raised investor hopes for broader de‑escalation and reopening of the strait.
- U.S. crude stocks tightened with an 8 million barrel drop to 433.7 million barrels in the week to May 29, keeping near‑term supply risk elevated despite the recent price pullback.
- The IMF said spot oil is roughly 3% above the April baseline it used for forecasts and announced faster or larger financial support for Ethiopia, Gambia, Burkina Faso and talks with Malawi to manage higher energy costs.
- Retail fuel prices lag wholesale changes so consumers remain exposed to future rises, with Spain reporting average pump prices of about €1.528 per litre for gasoline and €1.622 for diesel on June 5.