Oil Prices Hit Four-Year High Amid Supply Concerns and Geopolitical Tensions

Oil prices have surged to over $126 a barrel, marking the highest level in four years, driven by fears of a prolonged closure of the Strait of Hormuz due to U.S. sanctions on Iran. The U.S. average gasoline price has also reached $4.30 a gallon, impacting consumers. The ongoing geopolitical tensions and the breakdown of negotiations between the U.S. and Iran have led to significant supply disruptions, with tanker transits through the Strait of Hormuz dropping dramatically. Economists warn that if these disruptions continue, they could trigger a global recession and lead to higher prices for consumer goods reliant on petroleum products.

Key Details: • Brent crude peaked at $126.41 before settling at $116.3. • U.S. average gasoline prices reached $4.30 per gallon. • Daily oil tanker transits through the Strait of Hormuz have fallen to single digits. • Potential for global recession if supply disruptions persist into the second half of the year.