White House Warns Ukraine to Halt Black Sea Tanker Attacks as Gasoline Risks Climb Toward $5
Updated
Updated · POLITICO · Jul 24
White House Warns Ukraine to Halt Black Sea Tanker Attacks as Gasoline Risks Climb Toward $5
3 articles · Updated · POLITICO · Jul 24
Summary
The White House privately told Ukraine to “cease and desist” attacks on non-Russian tankers in the Black Sea, an unusual rebuke of Kyiv’s campaign to disrupt Moscow’s oil revenues.
The administration said the Caspian Pipeline Consortium is a vital route for Kazakhstan-origin crude to Europe, making those shipments an alternative to Russian energy rather than a legitimate target.
Three chokepoints — Hormuz, the Red Sea and the Black Sea — are now driving crude higher, while global inventories have fallen from ample levels in February to what analysts describe as critically low.
More than 60% of the Trump administration’s planned SPR drawdown has already been used, and U.S. refineries are running near full capacity, limiting Washington’s ability to cushion fuel costs.
Analysts say that leaves U.S. gasoline vulnerable to renewed increases into the $4-$4.50 range, and potentially $5 a gallon by September or October if Hormuz tensions do not ease.