Global Oil Price Hits $116 a Barrel, Highest Since April

The jump in oil prices has pushed energy costs higher for Americans, with the national average price of gasoline rising to $4.29 a gallon on Friday, according to the AAA motor club. The price is just below its peak in May of $4.55 and still more than 40 percent higher since the war began. Diesel prices also nudged higher on Friday, to $6.31 a gallon, still close to their peak in September of $6.51.

Investors have grown increasingly wary over the Trump administration’s war in Iran, discounting the likelihood that the conflict will be resolved soon. The price of Brent is expected to remain above $100 through April, according to futures contracts on Friday.

Attacks have escalated in the Middle East, particularly on ships in the Strait of Hormuz, the vital waterway through which roughly a fifth of the world’s oil supply was shipped before the war. The Iran-backed Houthi militia attacked an airport in Saudi Arabia this week, killing two people and prompting the United States to withdraw some diplomatic staff.

Strikes on energy vessels in the Middle East this month are at the highest level since the war began, based on data from Deutsche Bank. The conflict has drastically slowed oil supplies leaving the region. Oil shipments recovered somewhat in September but slumped again this month.

The rise in oil prices appeared to weigh on the stock market. The SP 500 fell 0.5 percent on Friday, adding to losses the day before that were driven by a sell-off in tech shares.

Article source: https://www.nytimes.com/2026/10/23/business/energy-environment/oil-prices-iran-war.html