HeadlinesBriefing favicon HeadlinesBriefing.com

California Fuel Crisis Deepens Amid Iran War Disruptions

Financial Times Companies •
×

California faces a dual energy crisis as soaring petrol prices and jet fuel shortages intensify due to Middle East tensions. The state’s reliance on Asian imports for refined fuels has left it exposed to global supply chain shocks, with $5.88 per gallon gasoline — the nation’s highest — and warnings of potential $9 prices. Chevron blamed California’s “over-regulation” for exacerbating the crisis, urging emergency measures to boost production. Meanwhile, the closure of the Strait of Hormuz has slashed West Coast imports by 26% in a week, diverting cargoes to Asia where prices are higher.

Experts warn that California’s unique vulnerability — losing 280,000 barrels daily of refining capacity and lacking pipelines to mainland supplies — could trigger prolonged shortages.