Gas prices skyrocket again after mystery explosion at Texas refinery

After the Valero refinery in Texas exploded yesterday, gas prices spiked once again, bringing more uncertainty as the war in Iran continues.

No one was injured in Monday’s explosion at the Valero refinery in Port Arthur, about 90 miles east of Houston, Mayor Charlotte Moses said.

The refinery has about 770 employees and can process about 435,000 barrels of oil per day, according to Valero’s website, producing gasoline, diesel and jet fuel.

Large plumes of smoke and flames billowed out from the refinery, with some residents reporting hearing a loud boom and seeing their windows shake.

The explosion comes amid a spike in gas prices driven by uncertainty over the global oil supply because of the Iran war.

Earlier today, wholesale gas prices spiked 10 cents a gallon, and diesel shot up 16 cents per gallon because of the explosion.

Andy Lipow, president of consulting firm Lipow Oil Associates, said the incident was nothing more than an ‘industrial accident’, which is still being investigated.

It comes a day after Trump delayed a deadline for Iran to open the strategic Strait of Hormuz for shipping or see its power stations targeted by air strikes, briefly driving down oil prices and boosting stocks.

Oil prices eased back, and financial markets pulled out of their tailspin after Trump said the US would pause strikes against Iran energy and power infrastructure for five days amid talks to end the conflict.

Brent crude swiftly fell as much as 10% following the post on Mr Trump’s Truth Social platform, to settle at around 101 US dollars a barrel by late afternoon.

There are still fears that uncertainty in the market because of the war in Iran could see prices increase in the coming weeks.

It’s not just the US seeing gas prices increase from the conflict. In the UK, prices surged by 20% last week after Trump threatened to blow up the world’s largest oil field.

A therm of gas traded at about 171p, which is up by over 20% on last month.

The rising prices are threatening UK households and energy bills this summer unless the conflict is solved.

The Strait of Hormuz, which carries 20% of the world’s oil supply, is effectively closed to most ships after vessels were targeted by Iran, adding to the global economic uncertainty.

Experts have warned that the conflict is now escalating to a serious supply crisis.

Kathleen Brooks, research director at XTB market analysts, said: ‘This war looks far from over, and the energy crisis is shifting from a shipping crisis to a supply crisis.

‘If Iran is targeting energy assets in the region, then the conflict gets more serious and the repercussions for a long-term energy price shock also start to play out in financial markets.’

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