New York: Fuel prices could continue to rise for months even after the Strait of Hormuz reopens, the US Energy Information Administration (EIA) said on Tuesday.
The war has disrupted global energy markets after Iran blocked the Strait of Hormuz, a crucial route that handles nearly one-fifth of the world’s oil and gas supply. The disruption has already pushed oil and fuel prices sharply higher worldwide.
According to the EIA, even if the strait reopens soon, restoring normal oil flows will take time.
The agency warned that supply chains may take months to stabilise, keeping fuel prices elevated in the near term.
The EIA projected global Brent crude oil prices to average around $96 per barrel this year.
Retail fuel prices, including petrol and diesel, are also expected to continue rising due to ongoing supply uncertainties.
Impact on Global Markets
In the United States, petrol prices have already climbed above $4 per gallon, the highest level in months, with further increases likely if the situation does not improve. Diesel prices have risen even faster, driven by strong demand and limited supply.
The agency also lowered its global oil demand growth forecast, citing fuel shortages in some regions and efforts by governments to control fuel consumption. Demand growth is expected to slow, particularly in Asia, which depends heavily on Middle Eastern oil supplies.
The EIA said that while demand could recover next year as supply conditions improve, the current situation is likely to keep global energy markets under pressure.
Overall, the report suggests that even if the conflict eases, consumers should not expect immediate relief, as fuel prices may remain high until oil production and supply return to normal levels.
