The great mystery for anyone around the world is when the U.S.-Israel war with Iran ends.
Short answer: Not soon. Or not soon enough.
Prices at the gas pump are now up 27 cents a gallon or 9% in just one week. And they’re at the highest levels since April 2025.
Crude oil prices have soared to levels last seen in the summer of 2024.
The U.S. national average price was at $3.251 per gallon on Thursday, according to AAA, up from Wednesday’s $3.198 and $2.839 on Dec. 31.
Light sweet crude, the American benchmark, settled at $81.01 barrel in U.S. futures trading, after hitting a 52-week high of $82.16. Its 8.5% gain was the biggest one-day gain since 2020, The Wall Street reported.
Brent crude, the global benchmark, settled at $85.41 a barrel in London, up nearly 5% on the day and up more than 40% since Dec. 31. The peak of $86.28 was a 52-week high.
Related: Pain at the Pump Intensifies as Iran Conflict Strands Tankers
Iran continues to attack Gulf shipping
The catalysts were continued attacks on shipping in the Persian Gulf, through which about 20% of crude oil must pass to reach customers. China is the biggest buyer of Persian Gulf oil.
A Bahamas-flagged crude oil tanker was targeted by an Iranian remote-controlled boat laden with explosives while anchored near Iraq’s Khor al Zubair port, according to initial assessments, Reuters reported. A second tanker at anchor off Kuwait was taking on water and spilling oil after a large explosion on its port side.
Iran threats to attack shipping trying to pass through the Strait of Hormuz at the eastern end of the Persian Gulf have effectively shut down that passage.
Nine vessels have been attacked since the conflict broke out between the U.S., Israel and Iran last weekend, Reuters said. A small container ship was abandoned by its crew Wednesday after an attack in the Strait.
AFP via Getty Images
U.S. closes embassy
Meanwhile, the United States suspended operations at its embassy in Kuwait City because of the conflict, Bloomberg reported. Iran has attacked the city in recent days. The U.S. State Department urged U.S. citizens to leave the country or shelter in place.
While most military analysts believe the U.S. and Israel have enough firepower to withstand any counter-attacks, Iran’s ability to launch large volumes of missiles, drones and artillery at its enemies has proved surprising. Especially since many of the armaments are believed to be in underground storage facilities subject to constant attacks by U.S. and Israeli bombers.
Stocks take a dive
The turmoil has roiled stock markets in the United States and elsewhere. The Dow Jones Industrial Average was down as many as 1,070 points this afternoon before recovering somewhat to a loss of 785 points at 49,755.
A 1,000-point loss would have been the first since the index dropped fell more than 1,000 points on four separate days in April 2025. That was during the turmoil caused by President Trump’s proposal to boost tariffs substantially.
The Standard & Poor’s 500 Index was off 0.6% to 6,831. The index briefly fell below 6,800, a key technical measure, during the session. The Nasdaq Composite Index fell 0.3% to 22,749.
Energy stocks mostly moved higher. The Energy Select Sector SPDR exchange-traded fund was up 0.4%. Exxon Mobil added 14 cents to $150. Chevron added 1.7% to $189.16.
Related: Crude, natural gas prices jump on Iranian news
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