Oil Tops $109 and Diesel Nears $6.30 as Iran War Squeezes Supply
Brent settled at $109.86 on Friday; officials argue about whether the Russia waiver or the Navy blockade will help.
Energy prices are the thread running through this week's economic news. Brent crude settled at $109.86 a barrel on Friday, up 3.7%, and West Texas Intermediate finished at $101.41, up 3.5%, according to Reuters figures cited by Fox News. On Wednesday, Brent was near $106 and WTI near $96.
At the pump, AAA puts the national average for regular gasoline at $4.33, up from $3.08 a year ago. Diesel, which moves freight and farm equipment, averages near $6.30 a gallon, the Spokesman-Review reported. Gasoline is up 34.2% over the year, and the Labor Department said gas drove more than half of September's monthly inflation increase.
The cause is the war. U.S. Central Command says U.S. forces have redirected 138 commercial vessels while enforcing a blockade of Iranian ports, and about 97% of ships trying to transit the Strait of Hormuz do so without being hit, according to CENTCOM spokesman Capt. Tim Hawkins. But Reuters counts more than 80 targets in Gulf countries hit at least 135 times by Iranian missiles and drones since February.
The White House says the surge is temporary. Vice President JD Vance credited the Navy with keeping gas prices lower than they would otherwise be. The administration has also issued a 60-day waiver of Russia-related sanctions and tariffs, which Secretary of State Marco Rubio defended as a response to energy-market pressure. Economist Jill Cetina of Texas A&M called a planned Russian diesel supply deal "more symbolic than substantive."
Why it matters: every product that moves by truck eventually carries a diesel surcharge. If crude stays above $100, the effects will show up in groceries and household goods over the coming months. We will track the numbers weekly.
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