Overview
- Oil futures jumped Tuesday as President Trump warned of strikes if Iran does not reopen Hormuz by 8 p.m. ET, with WTI near $116 and trading at a rare premium to Brent.
- The U.S. average gas price has climbed past $4.10 a gallon and diesel near $5.62, with California around $5.92 and San Francisco setting a city record as diesel topped $8, according to AAA and GasBuddy.
- JPMorgan says the national average could reach $5 a gallon by mid-April if Hormuz stays shut, while analysts report fuel shortages and curbed flights in parts of Asia and Australia.
- The Strait of Hormuz remains largely blocked, cutting a major oil artery and lifting costs across supply chains, and the FAO reports world food prices rose 2.4% in March with a warning that sustained high energy and fertilizer costs could dent future crop yields.
- U.S. drivers feel global shocks despite record domestic output because fuel trades worldwide and many refineries need heavier imported crude, and shippers are adding fuel surcharges that raise everyday delivery costs.