Year: 2026

US gas prices reached an average of $4.30 per gallon — an increase of 27 cents, or 7%, in only the past week. Worries about the inability of peace negotiations to achieve an agreement to conclude the conflict and reopen the Strait of Hormuz have caused prices to surge.

Oil prices experienced significant fluctuations overnight: The cost of Brent crude oil, a worldwide benchmark, reached over $125 per barrel early Thursday before falling back down.

This comes after reports that US President Donald Trump is considering a prolonged military blockade on Tehran’s ports to urge Iran to return to negotiations.

Here’s what you should be aware of:

Prominent economist points out “energy” crisis: Conflicts between the US and Iran have plunged the global community into a “significant energy and economic crisis,” as stated by the executive director of the International Energy Agency. Fatih Birol forecasted “environmental challenges” as regional powers in Asia and the Global South attempt to find alternative energy solutions.

“Bound for defeat”: Tehran “will react” to any extended US military blockade on Iranian vessels in the Strait of Hormuz, states the nation’s President Masoud Pezeshkian, as both countries seek to gain control over the crucial Strait of Hormuz after halted ceasefire discussions. Pezeshkian predicted that “any effort to establish a naval blockade” by the White House “is bound to fail.”

Message from Khamenei: Iran’s Supreme Leader Mojtaba Khamenei stated that “foreign entities” belong only “in the depths of its waters” of the Persian Gulf during tensions with the US, as reported by state media. Since his inauguration in March, Iranians have yet to publicly see or hear Khamenei, although he has released six written messages.

Iran commemorates Persian Gulf Day: On Thursday, Iran observed Persian Gulf Day, marking the nation’s triumph over Portuguese forces driven out from the island of Hormuz. This year’s annual celebrations hold increased importance as Tehran leverages its control over the crucial waterway to resist yielding to US pressures.

Israeli troops capture Gaza aid flotilla: In another part of the area, the Israeli army stopped the Gaza Sumud Flotilla in international waters heading to Gaza. In the previous year, Israel raided the fleet and arrested hundreds of individuals, including Swedish activist Greta Thunberg.

On March 19, an individual rides a bicycle by the Bank of England in central London. Henry Nicholls/AFP/Getty Images

The European Central Bank has maintained its primary interest rate at 2%, but cautioned that inflation may increase and economic growth could be weaker due to the impacts of the Iran conflict.

“The longer the conflict persists and energy costs stay elevated, the greater the probable effect on overall inflation and the economy,” the ECB stated in a announcement on Thursday.

Data released earlier Thursday indicated that inflation in the 21 countries utilizing the euro increased to 3% in April, up from 2.6% in March.

Previously, the Bank of England maintained its benchmark interest rate at 3.75%. Nonetheless, the BOE cautioned that borrowing expenses might increase later if a sustained surge in energy costs exerts additional upward pressure on inflation.

Prior to the war, UK inflation was set to decrease to the central bank’s 2% target starting this month. Inflation was at 3.3% in March, and the BOE now anticipates it will increase to just above 3.5% by year’s end.

“This shift in the inflation forecast is a direct result of the Middle East conflict,” BOE Governor Andrew Bailey informed journalists.

Defense Secretary Pete Hegseth is seated alongside Joint Chiefs Chairman General Dan Caine at a House Armed Services Committee hearing in Washington, on Tuesday. Kylie Cooper/Reuters

US Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs Gen. Dan Caine will respond to inquiries from senators today, after yesterday’s House hearing that occasionally became heated.

Hegseth and Caine will go back to Capitol Hill for a session regarding the White House’s $1.5 trillion defense budget proposal before the Senate Armed Services Committee. The session is anticipated to start at 11 a.m. ET.

In yesterday’s House hearing, Hegseth clashed with Democrats multiple times regarding the conflict in Iran. He claimed that legislators who were against the war represented the “greatest opponent” confronting the United States.

They will both be accompanied again by Jules “Jay” Hurst III, the Pentagon official who is now serving as the agency’s comptroller.

Hurst informed the House committee yesterday that the conflict in Iran has incurred approximately $25 billion in expenses so far. However, sources informed Xenix News that this figure is a low estimate that overlooks the expenses needed for repairing US military bases that were harmed during the war.

As the world focuses on the crucial Strait of Hormuz, Pakistan has launched six land transit routes for goods heading to Iran.

On April 25, the Ministry of Commerce announced the Transit of Goods through Territory of Pakistan Order 2026, implementing it immediately to establish a road corridor for alleviating cargo delays.

The directive permits the transit of goods from third countries through Pakistan for delivery to Iran by road.

Approximately 3,000 Iranian shipping containers have been at Karachi and Gwadar port since the conflict started two months back.

• The six specified routes connect Pakistan’s major ports—Karachi, Port Qasim, and Gwadar—with two Iranian border points—Gabd and Taftan—traversing through Balochistan, Pakistan’s southwest province adjacent to Iran.

The notification from the commerce ministry was founded on a 2008 accord between Islamabad and Tehran that permits the movement of goods and people via road. Iran has not utilized the routes so far because it depended on its own ports for commerce.

A picture captured from southern Lebanon’s Marjeyoun displays the smoke remnants of Israeli artillery fire on Thursday. AFP/Getty Images

According to Lebanese authorities and state media, a new series of Israeli airstrikes in southern Lebanon resulted in the deaths of nine individuals, including two children, today.

According to Lebanon’s health ministry, another 23 individuals were injured in several attacks on the region.

Xenix News has contacted the Israel Defense Forces (IDF) for a statement.

Although a ceasefire has been announced, Israel’s military leader Eyal Zamir informed soldiers on Wednesday that they would keep engaging on the “front lines,” as Israel exchanges strikes with Hezbollah.

According to the Lebanese ministry of health, more than 2,500 individuals have died and over 7,900 have been wounded since the conflict started, with the casualties still increasing even though a ceasefire is in effect.

Iran’s Supreme Leader Mojtaba Khamenei stated that “foreign players” belong nowhere in the Persian Gulf other than “the depths of its waters” during the ongoing tension with the US, as reported by state media.

Over seven weeks since he was declared their new supreme leader after his father’s assassination, Iranians have yet to see or hear from Khamenei, though he has sent out multiple written communications.

“Our neighbors across the Persian Gulf and the Gulf of Oman and we share a collective fate, and foreign entities — arriving from thousands of kilometers away with selfish motives — have no role here other than in the ocean’s depths,” he stated, based on an alleged remark.

In the message, Khamenei stated that Iran has begun a new phase of “regional and global order,” as reported by state television. He stated that Iran would “protect” its nuclear and missile abilities – crucial issues in any agreement with the US.

Thursday’s communication arrives as sources indicate that US President Donald Trump is planning a prolonged blockade of Iranian ports, seeing it as the main tool to push Iran to restart talks to conclude the conflict.

Khamenei’s remark follows shortly after US Secretary of State Mark Rubio stated that the US has evidence suggesting the Ayatollah is alive, but he raised doubts about whether he possesses “the clerical qualifications to truly function as supreme leader.”

Xenix News reporting by Jennifer Hansler was contributed.

Gas prices are shown at a Brooklyn gas station in New York City on Tuesday. Spencer Platt/Getty Images

Oil prices are declining today after temporarily rising above $126 a barrel, marking a four-year peak, as traders express concerns about an extended shutdown of the Strait of Hormuz that could tighten global oil availability even further.

Brent crude, the international oil standard, reached an intraday peak of $126.41 before dropping to $116.6 a barrel as trading activity decreased. WTI, the American benchmark, remained mostly unchanged at $106.7 per barrel.

“The oil market has transitioned from… wishing for a solution to focusing intensely on the tangible scarcity and enduring risk to supply with the potential intensification of conflict now imminent,” Neil Wilson, a strategist at investment bank Saxo noted in a memorandum.

US President Donald Trump aims to prolong a blockade of Iranian ports, sources informed Xenix News, a decision that might prompt Tehran to respond, potentially by targeting energy infrastructure.

The price surge on Thursday was also influenced by peculiarities in oil futures contracts, as stated by Wilson. The frequently referenced June futures contract expires today, leading trading volume to transition to the July contract, currently priced at approximately $110 a barrel.

US gas prices rose by 7 cents to $4.30 for a gallon of regular, marking the largest single-day increase in prices over the past six weeks. Gas prices have reached their peak since July 2022, as reported by AAA data.

The rise indicates a price increase of 27 cents, or 7%, in merely the past week. And costs have increased by 44% since the beginning of the conflict in Iran.

Oil futures indicate that elevated prices are expected. Crude futures remain relatively stable in Thursday’s trading, while US crude prices surged 7% on Wednesday, closing above $100 a barrel for the first time since the ceasefire in Iran was announced.

Gas prices decreased for two weeks following the commencement of the ceasefire, lowering the average to $4.02 by April 22. However, worries about the inability of peace negotiations to achieve a deal to conclude the conflict and reopen the Strait of Hormuz have caused prices to surge once more.

Fatih Birol, the executive director of the International Energy Agency, participates in a press conference at the IEA in Paris, France, on Thursday. Ludovic Marin/AFP/Getty Images

The world’s top energy economist stated Thursday that the global economy has been thrust into a “significant energy and economic” crisis following an overnight surge in oil prices.

The executive director of the International Energy Agency (IEA) predicted “major challenges” and “environmental concerns” as regional leaders rush to identify alternative energy sources.

“Nearly four and a half months back, we declared that the globe is confronting the largest energy crisis ever,” Fatih Birol mentioned during a press conference in Paris. “What is occurring now indicates that, sadly, we were correct.” The oil and gas markets are facing significant challenges.

The assault by the US and Israel on Tehran and the ensuing retaliatory attacks by Iran resulted in significant economic consequences that extended beyond the Middle East. On Thursday morning, brent crude oil prices, the global standard, surged past $125 per barrel. They subsequently dropped to $116.

The rise in oil prices – worsened by the obstructed movement of vessels through the vital Strait of Hormuz – is “creating significant strain on numerous nations,” Birol stated, noting that the availability of fertilizers and petrochemicals “is facing disruptions.”

“Our planet is encountering a significant energy and financial crisis,” he stated. “We will observe how this energy crisis impacts the energy sector and environmental concerns.”

Officials on human rights have consistently pointed out the unequal effect of the violence in countries that rely heavily on imports from the Gulf, noting rising hunger in Asia and the Global South.

The strategic importance of the Strait of Hormuz is well established. With the strait still effectively closed today, Iran’s government aims to showcase the nation’s longstanding dominance over the vital waterway during its observance of Persian Gulf Day.

Held annually since 2004, the event commemorates Iran’s triumph over Portugal in 1622 when it removed Portuguese forces from the island of Hormuz.

This year’s festivities are more focused, as the strait has turned into an essential element of Tehran’s influence over the US amid the ongoing conflict, while President Donald Trump is considering a prolonged blockade of Iran’s harbors.

“The Persian Gulf will always be Persian, the homeland of the influential and history-shaping Iranian people,” stated Gholamhossein Mohseni Ejei, Iran’s judiciary chief, in one of several similar statements issued by the leadership in Tehran.

During the event, a flotilla of small Basij naval boats assembled just off the southern coast of Iran.

Although Iran’s closure of the Strait of Hormuz has emerged as its most effective response to the US, it has simultaneously impacted its own trade—an effect worsened by the US blockade.

This is having a catastrophic impact on Iran’s already troubled economy, afflicted by conflict with the US and Israel, along with years of severe sanctions.

Joblessness has skyrocketed, putting millions at risk of losing their jobs and entering poverty. Inflation has surged significantly – the yearly rate in March hit 72%, but was considerably higher for necessities, based on official statistics.

Iranian Oil Minister Mohsen Paknejad encouraged the public to reduce their usage yesterday, declaring “conservation and savings” a fundamental principle “and a religious obligation,” while also downplaying the effects of the US embargo.