🚜 Today’s Market News – What You Need to Know
Tensions in the Middle East Could Affect Oil Flow
Overnight, Israel launched strikes on military and nuclear sites in Iran. This has stirred up global concerns, as Iran has warned in the past it could shut down the Strait of Hormuz — a narrow waterway where nearly 1 out of every 5 barrels of oil passes through. It’s also key for Qatar’s natural gas exports. While Iran hasn’t ever blocked the strait, the situation remains tense. The U.S. Navy helps patrol the area to keep global oil flowing safely.
Push to Lower the Price Cap on Russian Oil
Many countries in the G7, including Europe and the UK, are looking to lower the price cap on Russian oil from $60 to $45 per barrel to squeeze Russia’s revenue. Even if the U.S. doesn’t join immediately, Europe has strong control over shipping and insurance rules, meaning they could enforce this change on their own. The move comes just before a big summit this month and could impact oil trade dynamics in the months ahead.
Canadian Wildfire Recovery Underway
Cenovus Energy is restarting oil production at its Christina Lake site in Alberta, Canada, after wildfires in May forced a temporary shutdown. Thankfully, there was no damage to the facility, and output is increasing again. Several companies were affected, but most are back online and monitoring the fire risk closely.
đź’ą Market Overview: Prices Surge on Middle East Conflict
Oil prices jumped over $5 per barrel Friday morning after Israel’s airstrikes in Iran. While supply through the Strait of Hormuz hasn’t been disrupted, the geopolitical tension is enough to push oil prices to their highest level in months. This type of price spike hasn’t happened since early 2022, right after Russia’s invasion of Ukraine. If the conflict escalates, it could drive up fuel costs for everyone from farmers to truckers. But for now, pipelines and oil terminals remain unaffected.
🛢️ Energy Highlights: Gasoline Prices Could Dip Through 2026
According to the EIA (Energy Information Administration):
-
U.S. average gas prices are about $3.10 per gallon right now.
-
In the Midwest, we’re seeing lower prices around $2.96 per gallon.
-
Gas prices are expected to decline gradually through 2026, thanks to lower forecasted oil prices.
-
Crude oil prices are projected to be about $7 per barrel cheaper in 2026 compared to this year.
So while the global market may see short-term spikes, the longer-term outlook points toward more affordable fuel—a positive sign for folks in ag and rural transport.
📞 Questions about diesel supply or fuel planning this summer? Call your account manager—we’re always here to help.
