US Most Affected by Fuel Cost Surge Linked to Hormuz Strait Tensions
Translated & summarized from Arab48 by baba
A study by CREA reveals the United States is the most affected by rising fuel costs due to tensions in the Strait of Hormuz, with American consumers bearing an additional $160 billion. Globally, consumers have paid an extra $468 billion since late February. China and Canada followed the U.S. in total additional costs, while Canada and Australia had the second and third highest per capita costs, respectively. Oil prices have been volatile, with Brent crude exceeding $117 per barrel.
The story in 5 lines · by baba
- The US incurred an additional $160 billion in fuel costs due to Hormuz Strait tensions.
- Global consumers have paid an extra $468 billion for fuel since late February.
- China and Canada followed the US in total additional fuel costs.
- US consumers spent $471 per capita on extra fuel costs, eight times the global average.
- Oil markets have seen volatility, with Brent crude exceeding $117 per barrel.
A study by the Finland-based Centre for Research on Energy and Clean Air (CREA) indicates that the United States has been the most impacted nation by rising fuel costs stemming from global oil market shocks related to tensions in the Strait of Hormuz. The analysis, published Monday, states that increased gasoline and diesel prices have cost consumers worldwide an additional $468 billion since late February, when U.S. and Israeli attacks on Iran began. The U.S. alone incurred an extra $160 billion for fuel, approximately one-third of the global total. China followed with an additional cost of $54 billion, and Canada with $17 billion. On a per capita basis, Americans spent an extra $471 on fuel, nearly eight times the global average of $60, despite the U.S. being the world's largest oil producer. Canada ranked second in per capita cost at $422, followed by Australia at $386. CREA noted that while fuel price increases in the U.S. were comparable to other market economies, the impact was greater due to high per capita fuel consumption and limited progress in reducing oil dependency. Oil markets have experienced ongoing volatility due to Persian Gulf tensions and risks to shipping in the Strait of Hormuz, a critical global energy and commodity transit route. Brent crude oil surpassed $117 per barrel last week, reaching its highest point since April following a series of Iranian attacks on oil tankers near the strait, before touching the same level again on Monday.
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