Oil Tops $105 as Global Supply Disruptions Hit U.S. Fuel Prices

Oil prices closed Monday above $105 per barrel. This level reflects immediate supply constraints in the Middle East and Russia. The jump follows the temporary shutdown of Saudi Arabia’s East-West Pipeline. That route is now critical because shipping through the Strait of Hormuz is unstable.

Houthi rebels seized Perim Island near the Red Sea entrance. They also launched new attacks on Saudi targets. These actions tighten global supply further. The Russia-Ukraine conflict adds another layer of pressure. Ukrainian drones have damaged several major Russian refineries. This damage has triggered a global diesel shortage.

U.S. Pump Prices Hit New Highs

Diesel prices in the United States reached record levels this week. AAA reported a national average for regular gasoline of $4.33 per gallon on Monday. California drivers paid just over $6 per gallon. These figures show the direct impact of global supply shocks on local markets.

Geopolitical Factors Drive Market Volatility

Vice President JD Vance stated that officials are monitoring the situation closely. He emphasized protecting American interests. President Donald Trump said Iran is seeking a deal. He claimed Iranian officials are calling constantly. Ukraine’s President Volodymyr Zelenskyy rejected a unilateral energy ceasefire. He demanded U.S. verification that Russia will also halt attacks.

Supply Chain Risks Remain Elevated

The U.S. blockade on Iran has caused long lines for gasoline there. This disruption feeds into the broader energy crisis. Data from GN auto markets/energy: gasoline prices confirms the upward trend. Multiple regions are experiencing simultaneous supply disruptions. This convergence keeps a lid on available oil volumes. Traders expect volatility to persist until a stable supply chain is restored.