'Fallout from Hormuz closure' Brent, WTI jump 4.7%... lines form at gas stations

Oil prices extended gains on the 3rd (local time) after Iran effectively moved to close the Strait of Hormuz.

Brent crude futures settled at $81.4 a barrel on the ICE Futures exchange, up $3.66 (4.71%) from the previous session. On the New York Mercantile Exchange, West Texas Intermediate (WTI) rose $3.33 (4.67%) to finish at $74.56 a barrel.

The move reflects concerns that Iran’s closure of the Strait of Hormuz in retaliation for U.S. and Israeli strikes on Iran could disrupt energy shipments across the Middle East.

After Israel attacked Lebanon the previous day, Iran retaliated by striking energy infrastructure in the surrounding region and oil tankers transiting the Strait of Hormuz. The strait is a key energy chokepoint through which about 20% of global crude shipments pass.

President Donald Trump wrote on Truth Social that “if necessary, the U.S. Navy will begin escorting tankers through the Strait of Hormuz as quickly as possible.”

The remark signaled that the U.S. could deploy military force to directly defend the energy shipping lane; oil, which had surged more than 9% at one point, pared gains after Trump’s comments.

In parts of Europe, lines are already forming at gas stations amid worries about energy shortages.

According to French daily Le Parisien, a large Intermarché supermarket in the small French town of Oisemont saw a queue form at its gas station from the previous evening, forcing customers in a hurry to turn to independent stations where prices are higher.

With expectations rising for a sharp jump in global oil prices, some anxious drivers headed to gas stations early to prepare. It is not yet a panic, but the entrance to the parking lot was packed with drivers who came to refuel during their lunch break.

At a Carrefour Market near Oisemont, unleaded gasoline even ran out as more people than usual flocked in.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com