Global Oil Shock Hits Drivers With Sharpest Price Spike Since Ukraine War

Global Oil Shock Hits Drivers With Sharpest Price Spike Since Ukraine War

A sudden surge in global oil prices is delivering a severe blow to drivers worldwide, triggering government crisis talks, emergency rationing plans, and warnings of record-breaking costs at the pump. The sharpest weekly increase in U.S. gasoline prices since Russia's full-scale invasion of Ukraine in 2022 is being mirrored in countries across the globe, as attacks on energy infrastructure and regional conflict threaten supplies [97612].

In New Zealand, officials are telling citizens to "start walking" and are considering emergency fuel rationing as petrol prices approach $4 per liter. A damaged pipeline supplying over 40% of the country's petrol has been shut down for over a week, crippling supplies and affecting air travel and freight [106383]. In Australia, the Energy Minister is holding emergency meetings with industry leaders to address the sudden price surge and assess national fuel stockpiles [97925].

The crisis is fueled by direct attacks on oil and gas infrastructure. A reported strike on Iran's vast South Pars gas field sent oil prices soaring toward $110 a barrel and prompted Iran's military to vow "decisive action," sharply raising fears of a wider regional conflict [106261]. In Iraq, a major oil refinery was forced to suspend all operations after a drone strike ignited a large fire [102720]. These incidents follow attacks on Russian energy sites, collectively tightening global markets [97612].

Consumers are bearing the immediate brunt. South African motorists are bracing for a potential record petrol price hike of up to 8 Rand per litre, driven by the jump in global crude costs [95663]. The United Kingdom is preparing to increase its fuel duty for the first time since 2011, adding further pressure at the pump [13297]. In Hong Kong, drivers are fleeing high local prices by crossing the border into mainland China to fill up on cheaper, subsidized fuel [100556].

The German government is now preparing legislative groundwork for a potential "windfall tax" on oil companies, aiming to combat soaring fuel prices by targeting what it sees as excessive industry profits [106819]. The volatility underscores the fragile nature of global oil supplies, with analysts warning that any further disruption could lead to continued price instability in the coming weeks [97612].