US warns oil prices could peak in coming weeks

US Energy Secretary Chris Wright, speaking at the Semafor World Economy Conference, warned that oil prices could reach a peak in the coming weeks and are likely to continue rising until tankers pass through the Strait of Hormuz.

A month ago, Wright said there was a “very good chance” Americans could see gas prices go down to at least $3 a gallon by the summer, Caliber.Az reports, citing CNN.

The broadcaster noted that oil prices rose on April 13, approaching $100 per barrel.

Earlier, the heads of three major US oil companies warned President Donald Trump’s administration about severe consequences from a prolonged Iranian blockade of the Strait of Hormuz, as well as a potential worsening of the global energy crisis.

The companies said a long-term closure of the waterway could sharply disrupt global fuel supply chains.

Following the start of US and Israeli operations, Iran announced a suspension of trade through the Strait of Hormuz, through which 15–20% of the world’s oil, condensate and petroleum products, as well as more than 30% of LNG supplies, pass.

The blockade of the Strait of Hormuz led to a rise in global oil prices, although prices later fell following a two-week ceasefire agreement between the United States and Iran.

By Bakhtiyar Abbasov