Hormuz shipping attacks expose fragile oil-export workarounds as refinery disruptions lift fuel prices

  • President Trump attributed higher gasoline prices to refinery disruptions rather than Strait of Hormuz closures.
  • Persian Gulf crude reached $33 per barrel from $1.75 in February amid insurance and risk premiums.
  • Ukraine claimed responsibility for disabling 51% of Russia's oil-refining capacity late Sunday.

Oil exports through the Strait of Hormuz have continued despite attacks and costly shipping workarounds, but refinery disruptions in Russia, the Middle East and the United States are adding to fuel-market pressure. President Trump said record crude shipments meant Hormuz was no longer the main driver of gasoline prices, pointing instead to Ukrainian strikes on Russian refineries and shutdowns in Democratic-led U.S. areas including California. Tom Kloza, chief oil analyst at Gulf Oil, said the claim was partially correct but noted that Persian Gulf crude had risen to $33 a barrel from $1.75 in February because of insurance, freight and risk premiums. U.S. gasoline averaged $4.37 on Monday, while diesel reached $6.53, compared with last year's gasoline average of $3.13. Hormuz crude flows averaged 14.2 million barrels per day on Sept. 26, nearly 80% of pre-war levels, but tanker attacks, crew premiums, vessel shortages and elevated freight rates continue to raise delivery costs. The Ukrainian Defense Ministry said it had disabled 51% of Russia's oil-refining capacity. The energy disruptions have become a political issue ahead of the November midterm elections as the Trump administration pursues negotiations to end the Russia-Ukraine war.

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