WASHINGTON — Oil prices hovered near $90 a barrel Tuesday as the war involving Iran rattled global energy markets, raising concerns about potential supply disruptions through the critical Strait of Hormuz and prompting U.S. lawmakers to propose emergency measures aimed at easing rising fuel costs.
Brent crude, the global benchmark, traded at about $91.94 a barrel, while U.S. crude slipped to roughly $88.87 after volatile trading earlier in the week, according to reports from CNBC and CNN.
Energy markets have swung sharply as the conflict threatens tanker traffic through the Strait of Hormuz, one of the world’s most important oil chokepoints. The narrow waterway between Iran and Oman 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 that prolonged disruptions could have severe consequences for global energy markets.
“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 supply routes through the strait. Prices briefly approached $120 a barrel before retreating as traders responded to comments from U.S. President Donald Trump suggesting the conflict could soon wind down.
“I think the war is very complete, pretty much,” Trump said in a phone interview cited by CNN.
Despite the pullback, analysts say the outlook remains uncertain, noting that even temporary disruptions to shipping routes could trigger a broader global energy shock.
The Wall Street Journal reported that shipping through the Strait of Hormuz slowed sharply amid concerns about possible attacks, creating what the publication described as the most serious threat to global oil flows in decades. The conflict has already injected significant volatility into crude markets and raised the possibility that prices could surge again if disruptions persist.
Trump also warned Iran against attempting to block oil shipments through the strait.
“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 said in a Truth Social post cited by CNBC.
The economic effects of the conflict are beginning to ripple across the United States, where gasoline prices have started rising sharply.
In response, a group of lawmakers has introduced legislation aimed at lowering fuel costs for consumers. Senators Mark Kelly and Richard Blumenthal, along with Representative Chris Pappas, introduced the Gas Prices Relief Act, which would temporarily suspend the federal gasoline tax.
The proposal would halt the 18.4-cent-per-gallon federal gas tax until Oct. 1, 2026, in an effort to lower prices at the pump 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 proposed measure, the U.S. Treasury Department would monitor fuel prices to ensure oil companies pass the tax savings to consumers rather than keeping the additional margin as profit.
Energy analysts say such policy steps could provide short-term relief for motorists but are unlikely to fully offset global price shocks if tensions in the Middle East escalate further. (Source: IANS)
