Shell petrol prices are rising rapidly right now, and the reason for this goes back to narrow waters that most motorists probably never give much thought to. The Strait of Hormuz, the shipping route off Iran’s southern coast that carries about 20% of the world’s oil, has been effectively closed since the US and Israeli attacks on Iran began on Saturday. Shell gasoline prices today are already reflecting that damage, with Brent crude settling at $81.40 per barrel on Tuesday, up 4.7% in one session. Oil and gas prices are also soaring across Europe and Asia, and today’s Strait of Hormuz news makes clear that the situation is far from resolved.
Shell gasoline prices soar today amid oil and gas price turmoil
Strait of Hormuz stops
On a typical day, about 80 tankers pass through the Strait of Hormuz. Only two people attended on Monday. Crude oil tanker sailings have fallen to just four a day, compared with an average of 24 a day since January, according to Vortexa ship tracking data. Hundreds of tankers laden with oil and LNG are currently anchored near major hubs like Fujairah, unable to go anywhere and deliver to customers in Asia, Europe and elsewhere.
Dan Pickering, Chief Investment Officer of Pickering Energy Partners, said:
“This is a virtual closure. There are quite a few ships on both sides of the strait, but no one wants to pass.”
Iran has also directly stated its reasons. Mohammad Akbarzadeh, a Naval Revolutionary Guard official, said:
“Currently, the Strait of Hormuz is under the full control of the Islamic Republic Navy.”
Energy production declines across the region
Qatar suspended LNG production on Monday. These facilities supply approximately 20% of global LNG exports. Saudi Arabia also suspended production at its largest oil refinery. Iraq has already cut 700,000 barrels per day from Rumaila and another 460,000 barrels per day from Western Qurna 2, and has warned that total cuts could be more than 3 million barrels per day if tanker movements do not return. Gasoline prices in Europe rose as much as 40% on Tuesday, adding to a 40% jump the previous day. Oil and gas prices are currently at levels the market hasn’t seen since early 2025.
Shell gas prices hit $3, politically sensitive
Shell gasoline and other U.S. fuel prices have topped $3 a gallon for the first time since November, just weeks after President Trump touted prices below $2. Gasoline prices are now a real political issue ahead of the midterm elections, and Washington is feeling the pressure.
President Trump said Tuesday that the U.S. Navy would begin escorting oil tankers through the strait.as needed”, also announced political risk insurance for shipping companies operating in the Gulf. This is one of the government’s most direct measures to date to combat soaring Shell petrol prices.
More than 80% of the oil and gas that moved through the Strait of Hormuz in 2024 went to Asia, with China, India, Japan, and South Korea leading the way. These countries have stockpiles that could last for months to come, but today’s news from the Strait of Hormuz makes it clear that time is running out. Shell gasoline and the broader fuel market continue to rise, and oil and gas prices are likely to rise further if no resolution is found. As of this writing, no diplomatic breakthrough has yet been achieved.
