#energy-crisis

#energy-crisis

The price of Brent oil briefly reaches $119 per barrel as Iran continues to block traffic through the Strait of Hormuz amid a US blockade on its ports.

If the war drags on, fuel rationing could be a possibility, but first we would issue a recommendation to conserve fuel and prioritise public transport.

"Fuel use increases significantly at higher speeds, so even a relatively small reduction can result in noticeable savings," he stated. He added that lowering motorway speeds could improve fuel efficiency by around 10%, depending on the vehicle.

"We have seen a significant change in the dynamic. So definitely, when the American consumer sees an increase in fuel prices they try to move to solutions which are more friendly in terms of cost, especially in states like California."

Fatih Birol, head of the International Energy Agency, stated that Europe has maybe six weeks or so of jet fuel left, warning of possible flight cancellations soon if oil supplies remain halted by the war.

Hassett acknowledged that grocery prices have improved, but electricity prices remain high, along with health insurance and airline fares, indicating ongoing inflationary pressures.

Japan will release starting in early May the equivalent of roughly 20 days' worth of oil from the national reserves to ensure the stable supply of crude oil.

The conflict has driven up the price of oil and natural gas; damaged oil refineries, tanker terminals and other energy infrastructure; disrupted shipments of fertiliser that the world's farmers depend on; and damaged the confidence of businesses and consumers.

We are going through what we might call the mother of all crises. The world has witnessed many oil crises in the past 50 years, such as the post-COVID-19 crisis and following geopolitical tensions.

After 40 days of fighting, the United States and Iran agreed to a two-week ceasefire, with negotiations expected to begin in Islamabad. One key point in Iran's proposal is allowing shipping to resume through the Strait of Hormuz, which has been closed since the war began, causing global oil prices to soar.

The war in Iran has created an energy shock in Africa, as the continent relies heavily on oil and gas imports from the Middle East.