The near standstill at the Strait of Hormuz has resulted in a global oil supply shock, sending gas prices higher in the process. In March, the gas index climbed 21.2% from February, registering the largest monthly jump since the series began in 1967.
Claim 30% Off TipRanks
Forget margin or options. Here's how the pros trade QQQThe Consumer Price Index (CPI) increased by 0.9% month-over-month in March, with the gas index driving nearly three-quarters of the monthly rise, according to the Bureau of Labor Statistics (BLS).
Oil Prices Surge 26% as Gas Hits $4.15
Since the start of the U.S.-Iran war on February 28, Brent crude oil futures (BZ) have risen by 26%. That’s led to the average price of a gallon of gas in the U.S. increasing by $1.17, or 39%, to $4.15.
A reopening of Hormuz wouldn’t necessarily fix the supply shock immediately, as several Middle Eastern countries have limited oil production and are unable to quickly increase supply. Despite a U.S.-Iran ceasefire, traffic through Hormuz remains severely restricted.