The US energy department has warned petrol and diesel prices are unlikely to recede to prewar levels until mid-2027 at the earliest, ratcheting up costs for industries from trucking and farming to airlines and retailers. Official figures released on Tuesday show US petrol prices rose 19 per cent over the past two weeks to $3.50 a gallon as the Middle East conflict throttled energy supplies, while diesel jumped 28 per cent to $4.86 a gallon.
Petrol is not forecast to drop back below its $2.94 per gallon pre-conflict level before the end of 2027, according to the Energy Information Administration, the energy department’s statistics arm. Diesel — the lifeblood of American industry — will not fall below the $3.81 per gallon it sat at two weeks ago until the middle of next year.
The shift threatens to push up costs for industry, which in turn will ratchet up prices for consumers with far-reaching inflationary impacts for the world’s largest economy. It will also pile pressure on Donald Trump, who campaigned for the presidency in 2024 on a platform to slash petrol and energy costs. Prices at the pump are now higher than at any time during his two terms in office.
“We’ve got a lot of costs moving their way through the system,” said Tom Kloza, an independent oil analyst. “We’re looking at some really scary inflation ratings — pervasive inflation throughout the country.”
The rise in the price of refined fuel products in the US comes as Iran’s threats to strike ships traversing the Strait of Hormuz have all but halted maritime traffic in an artery through which roughly a fifth of global oil supply flows.
That has prompted crude prices to surge, with West Texas Intermediate, the US benchmark, rising from $61 a barrel before the conflict started to a peak of almost $120 in intraday trading on Monday before falling back. The US benchmark fell 11.9 per cent to $83.45 on Tuesday.
Below, Farm Journal asks if this is a “worst case” scenario for fertilizer prices.
Well, Mr. Josh Linville, the decision to move through the strait is also controlled by whether the maritime insurance industry thinks the risk is low enough to cover them again.
I’m sure that those urea ship crews can keep themselves occupied with daily maintenance, poker games, getting drunk, and playing video games. They can see the smoke plumes in the distance, and are probably not in any hurry.
Watch out for Dems like old man Schumer who still hold a 20th-century attitude about the US supporting Israel with inordinate amounts of US treasure.
Let’s spend that US treasure to help some other group of 10 million people around the world. We could split that support up among the 57 million in Myanmar or the 51 million in Sudan or the 32 million in Madagascar with a clear conscience.
Trump, the witless climate hero.
“The first three years of Russia’s war in Ukraine, for example, produced at least 230 million tons of CO2 equivalent, according to nonprofit Initiative on GHG Accounting of War. That’s comparable to the combined annual emissions of Hungary, Austria, Czechia and Slovakia.”
https://www.dw.com/en/iran-war-experts-warns-bombing-oil-infrastructure-in-iran-to-leave-lasting-environmental-damage/a-76335587
“A new study estimates that the Israel–Gaza war has generated around 33 million tonnes of carbon dioxide equivalent (CO₂e), highlighting the often-overlooked environmental impact of armed conflict.
To put this into context, 33 million tonnes of carbon dioxide is equivalent to:
· the total emissions of Jordan in 2024
· the annual emissions of 7.6 million petrol cars
· the total carbon uptake by 33.1 million acres of forests in a year.”
https://www.lancaster.ac.uk/news/study-highlights-the-hidden-climate-cost-of-the-israelgaza-war