The North American West Texas Intermediate (WTI) benchmark crude has surged 51 percent over the past month, climbing over $110 per barrel, as the ongoing Iran war continues to disrupt physical oil supplies and raise fears of a prolonged energy shock worldwide.
The increase amounts to nearly $35 per barrel, marking the largest monthly price rise since WTI futures began trading in 1983 (43 years). The sharp rally reflects concerns that disruptions around the Strait of Hormuz and regional supply routes may continue for months.
The latest jump followed signals from US President Donald Trump that the war is unlikely to end quickly.
The impact is already being felt in fuel markets, with gasoline prices moving above $4 per gallon and diesel reaching around $5.50 per gallon, levels last seen during the 2022 Russia-Ukraine energy crisis.
Analysts say that even if the Strait of Hormuz reopens soon, the backlog of vessels and normalization of oil, gas, and LNG flows could take three to six months, keeping upward pressure on global energy prices.
The continued surge in oil prices is likely to remain a major concern for import-dependent economies such as Pakistan, where higher crude costs directly affect fuel prices, inflation, and the external account.
