#energy-market

#energy-market

The global impact of the war in Iran has caused the average price of gasoline in the United States to rise above $4 per gallon for the first time since 2022. Prices have risen by more than 30% since late February, reflecting an energy shock affecting the entire economy.

US Treasury Secretary Scott Bessent described the Iranian oil waiver as a 'narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,' which is expected to release about 140 million barrels. He emphasized that Iran 'will have difficulty accessing any revenue generated.'

"I don't think there's a big wall of oil coming from Russia if peace breaks out," said energy forecaster Dan Pickering. "My expectation is there's a more significant impact on sentiment-'Here come the Russians'-than there would be on actual barrels."

"The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs..."

Privately owned gas-fired power plants exploit a unique market power position in the balancing mechanism, demanding eye-watering sums of money to supply energy at short notice.