Israeli Gas Prices Surge Above 8 Shekels Amid Global Oil Market Tensions

After two months of decline, gasoline prices in Israel are set to rise again, surpassing 8 shekels per liter. This increase, expected overnight between Saturday and Sunday, will add approximately 61 agorot to the price, reaching levels last seen during periods of heightened security tensions. The recent surge is driven by a 22% jump in global oil prices and a strengthening US dollar against the shekel, resulting in an overall 8% increase in local fuel costs.

Earlier in June and July, prices had eased below 8 shekels per liter following peaks in April and May caused by the global energy crisis. The temporary relief was largely due to reduced geopolitical tensions, particularly between the US and Iran, which lowered fears of disruptions to oil shipments through the strategic Strait of Hormuz.

However, renewed concerns about potential supply interruptions have reversed this trend, pushing prices upward again. If the geopolitical situation remains unstable, fuel prices in Israel could continue climbing, potentially nearing the spring peak of over 8.20 shekels per liter. Conversely, if diplomatic talks between the US and Iran resume and tensions ease, prices may decrease in the next update scheduled for early September.