U.S. crude oil tops $80 per barrel as escalating Iran war disrupts global fuel supplies

U.S. crude oil prices on Thursday topped $80 per barrel as the escalating Iran war disrupts global fuel supplies, with traffic in the Strait of Hormuz at a standstill due to attacks on tankers.

The price of West Texas Intermediate oil was last up 7.58%, or $5.66, at $80.32 per barrel by 1:21 p.m. ET. Global benchmark Brent rose 4.8%, or $3.91, to $85.31 per barrel. Oil prices have surged about 20% this week.

Retail gasoline prices in the U.S. have jumped nearly 27 cents since last week to $3.25 per gallon on average, according to the motorist group AAA. The last time gas prices made a similar jump was in March 2022 after Russia invaded Ukraine, the group said.

Iran claimed to have struck an oil tanker with a missile, according to a state media report. Iran’s Revolutionary Guard ordered a closure of the Strait of Hormuz earlier this week and threatened to attack tankers passing through it, according to state media.

The British Navy on Thursday reported a large explosion at a tanker at anchor in Iraqi territorial waters. The ship’s master reported seeing a small vessel flee the scene. The crew is safe and no fires were reported.

Tanker traffic through the Strait of Hormuz has come to a standstill since the U.S.-Israeli war against Iran began, as ship owners are worried about the volatile security situation. About 20% of global oil consumption is exported through the strait.

President Donald Trump said Tuesday the U.S. will provide political risk insurance for tankers passing through the strait. Trump said the U.S. Navy would escort ships through the Persian Gulf if necessary.

The Trump administration does not have a timeline for when the strait will be safe for commercial shipping again, White House press secretary Karoline Leavitt told reporters Wednesday.

“I don’t want to commit to a timeline, but certainly it’s something that is being calculated actively by both the Department of War and the Department of Energy,” Leavitt said when asked during a briefing.