JD Vance to Islamabad as oil woes keep gas prices
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- JD Vance is on his way to Pakistan for talks with Iranian officials in Islamabad on Saturday, aiming to progress toward ending the war that has spiked global oil prices.
- Analysts expect gas prices to remain high for the foreseeable future despite the ceasefire, citing the scale of recent oil flow disruptions.
- Pavel Molchanov of Raymond James explained that a drop in oil prices typically takes a couple of weeks to show up at the pump, noting Americans still pay over $4 per gallon while Brent crude fell about 10%.
- Shohruh Zukhritdinov, a Dubai‑based oil trader, said Iranian attacks on Saudi Arabia’s East‑West Pipeline reduced its capacity by 10%, creating a logistics shock atop a production shock.
- Kpler data showed the Strait of Hormuz was almost shut, with only six tankers passing on Thursday and none on Wednesday, despite the ceasefire.
- RS released a calculator that uses oil futures data to estimate how much more Americans may pay at the pump over the next year.
Why it matters: Consumers bear the brunt as gas prices stay above $4 per gallon even after Brent fell 10%, while shipping firms grapple with a near‑closed Strait of Hormuz and traders contend with a 10% cut to Saudi’s East‑West Pipeline capacity, limiting market supply recovery.
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