Overview
- Average U.S. gasoline reached $4.18 a gallon on Tuesday, the highest since the Iran war began, after talks to reopen the Strait of Hormuz stalled and Brent hovered around $110.
- The squeeze is hitting households and businesses, with U.S. diesel at $5.46 and UK drivers paying roughly £2 billion extra since February 28, according to AAA and the RAC Foundation.
- Tanker flows through the Strait of Hormuz remain sharply reduced as Iran restricts traffic and a U.S. naval blockade persists, limiting one of the world’s key oil and liquefied natural gas routes.
- The United Arab Emirates said Tuesday it will exit OPEC on May 1 to gain flexibility on output once flows resume, introducing fresh uncertainty for future supply management.
- BP’s first‑quarter profit more than doubled to about $3.2 billion on “exceptional” trading, while the World Bank projects a 24% rise in energy prices this year and Goldman Sachs raised its late‑2026 Brent forecast to $90, citing tighter balances and record April inventory draws.