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US gas prices may not drop below $3 until 2027: Wright
United States gas prices may not fall below US$3 per gallon again until 2027, Energy Secretary Chris Wright said, as the Iran war continues to disrupt oil shipping. The national average gas price is $4.048 per gallon today, per AAA, up from $2.90 at the beginning of February. The Strait of Hormuz, where about one-fifth of global oil shipments would usually transit, remains closed amid both Iranian attacks on ships and a U.S. blockade of Iran’s ports. “That could happen later this year. That might not happen until next year,” Wright told CNN’s State of the Union when asked when gas prices could drop below $3. “But prices have likely peaked and they will start going down. Certainly, with a resolution of this conflict, you will see prices go down.” Wright claimed that ships would be able to pass through the strait after the U.S. and Iran reach a peace deal, saying that this “won’t be in the too-distant future”. The countries’ two-week ceasefire remains in effect. The U.S. will send a delegation to Pakistan on Monday for potential peace negotiations after abandoning a previous round of talks, though Iran has said it does not plan to participate in this week’s discussions. U.S. Treasury Secretary Scott Bessent had sai
Energy
Europe could run out of jet fuel in six weeks
The International Energy Agency (IEA) warned that Europe only has “maybe six weeks or so” of remaining jet fuel due to oil shortages caused by the closure of the Strait of Hormuz. IEA executive director, Fatih Birol, said that there would be flight cancellations “soon” if oil supplies from the Middle East were not restored within the coming weeks. “I can tell you soon we will hear the news that some of the flights from city A to city B might be cancelled as a result of lack of jet fuel,” he said. Dutch airline KLM said it would cut 160 flights in the coming month due to the high kerosene jet fuel prices. While this accounts for less than 1% of its schedule, the cancellations underline the financial pressure on the airline industry. This concerns a limited number of flights within Europe that, due to rising kerosene costs, are currently no longer financially viable to operate. There is no kerosene shortage. “KLM expects a busy May holiday period and is making sure passengers can travel to their holiday destinations as planned.” Birol also said the global repercussions of the war in Iran could lead to “the largest energy crisis we have ever faced”, stemming from the pinch-off of oil, gas and other vital supplies
Energy
Is the Iran war fuelling the Petrodollar’s decline?
Does United States President Donald Trump’s sustained war with Iran represent a circuitous attempt to stanch the continued decline of the petrodollar – aka U.S. dollars earned by countries through oil exports – one of the lingering remnants of U.S. exceptionalism, which was elevated at the end of World War II? Much of the noise and hype surrounding the Iran War is focused on a reopening of the Strait of Hormuz. Meanwhile, what’s often overlooked is that while around 80% of global oil trades are still U.S.-dollar-denominated, there are already efforts in play by China, Russia and the BRICs trading block to diversify away from the U.S. dollar, which, among other things, would enable them to avoid financial sanctions. Efforts by China to launch yuan-denominated crude oil futures clearly threaten to undermine the petrodollar, and this is something that the U.S. administration prays never happens. If oil were no longer traded in U.S. dollars - marking the end of the "petrodollar" system - the U.S. economy would likely face significant structural shifts, primarily driven by a decrease in global demand for the greenback. In short, the U.S. would risk losing what's often regarded as its “exorbitant privilege”, which could c
Energy
Iran’s oil gambit is rewriting global economic power
Not by any measure could Iran be framed as winning the war against the United States and Israel, now well into its second month. However, its control over the flow of oil, which has far-reaching consequences for the global economy, has potentially elevated the worldwide gravitas of the Persian state to a level it could only have imagined a few weeks ago. So much so that Robert A Pape, a military and international security expert, believes actions by the U.S. and Israel have not only ingloriously backfired but accidentally gifted Iran the economic leverage to become a major world power. Underpinning Iran’s ascent to a centre stage of global power is, of course, its ability to preside over the Strait of Hormuz. Assuming Iran’s control over the passage of ships through the Strait persists for months or even years, Pape foresees a drastic reshaping of the global order, much to the detriment of the U.S., which has struggled to maintain its status as a global superpower since the early 1990s. Clearly, much of this speculation is contingent on how long Iran’s grip on the Strait – which accounts for a fifth of world’s oil supply – can last.A strait controlled without being closedWhile there’s a widespread expectation that U.S.
Energy
Fuel prices set to stay high, even if Hormuz reopens
Global fuel prices are likely to remain elevated for months even if the Strait of Hormuz reopens, contradicting assurances from United States President Donald Trump that consumers would see rapid relief once the conflict with Iran subsides, according to new U.S. government forecasts. In its latest short-term energy outlook, the U.S. Energy Information Administration said the restoration of oil flows through the strategic waterway would be gradual and uncertain, keeping upward pressure on crude and refined fuel prices well beyond the end of hostilities. The assessment underscores the lag between geopolitical events and retail fuel costs, as well as the structural dependence of global markets on Middle Eastern supply. The warning comes as the U.S.–Israeli war with Iran enters its second month, with Tehran continuing to block the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil and gas supplies transit. The disruption has driven sharp increases in energy prices worldwide and injected sustained volatility into oil markets. The EIA now expects Brent crude to average US$96 a barrel in 2026, up from a prior forecast of $78.84, reflecting what it describes as a persistent “risk premium” tied to s

Energy
Australian government halves fuel excise
The Australian government has slashed the fuel excise in half for three months to ease pressure at the pump amid the Iran war. Halving the fuel excise is set to reduce the cost of fuel by around 26.3 cents per litre. This will lead to a A$19 reduction for a 65L tank of fuel. The halving of the fuel excise will commence from 1 April and run to 30 June. “We are making fuel cheaper today because we understand that Australians are under serious pressure,” Albanese said. Alongside this, the federal government will also reduce the Heavy Vehicle Road User Charge to zero for three months so truck drivers can continue their work across the nation. The government will also defer the next scheduled increase in the Heavy Vehicle Road User Charge by six months. According to Treasurer Jim Chalmers, the fuel excise cut and reducing the heavy vehicle road user charge will cost $2.55 billion. Opposition leader Angus Taylor called for a halving of the excise last week, which he estimated to cost $1.5 billion alone. The government have also created a four-stage fuel security plan, which includes the potential for state and territory governments to implement “practical measures to reduce fuel demand”, but does not explicitly f
Energy
Trump taps ethanol lever as fuel nears 2022 highs
The United States Environmental Protection Agency, directed by the Trump administration, on Wednesday waived summer restrictions on the sale of E15 gasoline - a fuel blended with 15% ethanol - in an effort to ease prices that have surged more than 30% since the Iran war began. The agency also suspended federal enforcement of certain state fuel requirements and lifted restrictions on E10 blends, effectively allowing the production and distribution of gasoline with 9-15% ethanol content from 1 May through at least 20 May. EPA Administrator Lee Zeldin said the waivers would prevent fuel supply disruption and that the agency would monitor conditions and extend them if warranted. The national average for regular gasoline hit US$3.98 per gallon this week, according to AAA - the highest since Russia's invasion of Ukraine in 2022. Diesel has climbed more than 40% since the war began to $5.37 per gallon.A familiar playbook, stretched thinThe E15 waiver is not new. Both Republican and Democratic administrations have issued summer ethanol exemptions in recent years, and bipartisan calls to make the policy permanent have been growing. The move sits alongside a broader suite of emergency measures: a 172-million-barrel release
Energy
Kuwait warns Hormuz closure risks catastrophe
Kuwait has warned that the economic blockade of Gulf Arab producers due to the closure of the Strait of Hormuz could be catastrophic and will trigger a domino effect across the world. “We are outraged by this attack against us,” Sheikh Nawaf al-Sabah, the CEO of the Kuwait Petroleum Corp., told the oil industry at S&P Global’s CERAWeek energy conference. “This is an attack not only against the Gulf, but it is an attack that is holding the world’s economy hostage.” This comes as Kuwait Petroleum Corp (KPC) has reduced its crude oil production due to disruptions to shipping in the Strait. According to al-Sabah, KPC will only produce oil for domestic consumption right now. The company said production could be resumed “relatively quickly” if the war in Iran ends and reaches full production within three to four months. On 10 March, Kuwait reduced output to around 500,000 barrels per day, a significant decrease from the more than 3 million barrels per day before the outbreak of the U.S.-Iran war on 28 February. This follows Saudi Aramco CEO Amin Nasser's warning that the Iran war could have “catastrophic consequences” for the world economy. Al-Sabah said Nasser understated the potential impact. “It’s a domino
Energy
US aims to bring more diesel to market: Wright
The United States aims to bring more diesel to the market, Energy Secretary Chris Wright said, as fuel prices rise amid the Iran war. Wright did not give any specific details on how or when the new diesel would be added. Diesel prices in the U.S. have climbed by around 40% since the start of the war. “We do have some ideas on diesel, that we can bring extra diesel to the marketplace. And I think we will see that happen before too long,” Wright said in a CNBC interview. According to Wright, the U.S. is not considering limiting diesel exports. “You don’t want to interrupt the free flow of energy trades,” he said. “If we blocked exports, we’d have to turn down our own refineries and produce less oil and less refined products. That wouldn’t be productive for the United States, certainly wouldn’t be productive for the world.” An increase in heavy crude from Venezuela could also be used to produce more diesel in U.S. refineries, Wright said. The U.S. has begun releasing a slate of 172 million barrels from its strategic oil reserves, though Wright said further releases were not likely. Oil prices sank today after President Donald Trump said the U.S. would postpone all strikes on Iran’s energy infrastructure for five day