Oil Prices Near $90 as Iran Conflict Roils Global Energy Markets

WASHINGTON — Oil prices hovered near $90 a barrel Tuesday as conflict involving Iran rattled global energy markets, fueling fears of supply disruptions through the Strait of Hormuz and prompting U.S. lawmakers to propose emergency measures to ease rising fuel costs.

Brent crude, the global benchmark, traded around $91.94 a barrel, while U.S. crude was about $88.87 after volatile trading earlier in the week, according to reports by CNBC and CNN.

Energy markets have swung sharply amid concerns that the conflict could disrupt tanker traffic through the Strait of Hormuz, a critical oil chokepoint between Iran and Oman. The narrow waterway carries a significant share of the world’s crude exports from Gulf producers including Saudi Arabia, Iraq, and the United Arab Emirates.

Saudi Aramco CEO Amin Nasser warned the situation could have severe consequences if disruptions continue.

“There will be catastrophic consequences for the world’s oil market,” Nasser said, according to CNBC. “While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”

Oil markets initially surged earlier in the week amid fears that the conflict could choke off shipping routes through the strait. Prices briefly approached $120 a barrel before easing after comments from President Donald Trump suggesting the conflict might end soon.

“I think the war is very complete, pretty much,” Trump said in a phone interview cited by CNN.

Despite that assessment, analysts say the outlook remains uncertain, warning that even short-term disruptions could trigger a broader global energy shock.

The Wall Street Journal reported that shipping through the Strait of Hormuz slowed sharply amid concerns about potential attacks, describing the situation as the most serious threat to global oil flows in decades.

Trump also issued a warning to Iran, saying any attempt to block the strait would provoke a strong U.S. response.

“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,” Trump wrote in a post on Truth Social cited by CNBC.

The economic impact of the conflict is already being felt in the United States, where gasoline prices have begun climbing.

In response, several U.S. lawmakers introduced legislation aimed at reducing fuel costs for consumers.

Senators Mark Kelly and Richard Blumenthal, along with Representative Chris Pappas, proposed the Gas Prices Relief Act, which would temporarily suspend the federal gasoline tax to help lower prices at the pump.

The measure would suspend the 18.4-cent-per-gallon federal gas tax until October 1, 2026, providing temporary relief to motorists while global energy markets remain unstable.

“Suspending the federal gas tax would help bring prices down and give families some much needed relief,” Kelly said.

Under the proposal, the U.S. Treasury Department would monitor fuel prices to ensure oil companies pass the tax savings on to consumers rather than absorbing them as profits.

Energy analysts say such steps may offer short-term relief but are unlikely to fully offset global market pressures if tensions in the Middle East escalate further. (Source: IANS)