US crude exports to Australia surge as Middle East supply risks tighten global energy markets and lift prices to multi-year highs.
West Texas Intermediate crude surged to $114.58 on April 7, 2026, as disruptions in the Strait of Hormuz upended global oil trade routes. The conflict has forced the US to ship crude to Australia, a market traditionally reliant on Middle Eastern and Asian suppliers, highlighting shifting supply dynamics.
Prices climbed from the mid-$60s in late February, nearing $95 in early May as markets priced in persistent supply risks. US refineries, already operating near capacity, face constraints in processing additional barrels, limiting domestic gasoline production despite higher crude availability.
Integrated oil majors are benefiting from elevated prices and tighter refining spreads, as supply disruptions ripple through global energy markets. The rerouting of trade flows underscores the fragility of supply chains amid geopolitical tensions.