Key Takeaways
- Dated Brent crude oil prices hit $141.37 per barrel, the highest level since 2008, following the destruction of a major Iranian bridge and threats of further military strikes.
- Amazon (AMZN) announced a 3.5% fuel surcharge on online merchants starting April 17 to combat rising logistics costs tied to the Middle East conflict.
- Todd Blanche has been named Acting Attorney General after President Trump removed Pam Bondi from the role, signaling a major shift in the Department of Justice.
- Israel’s Leviathan gas rig is set to resume operations, providing a critical supply boost as regional energy infrastructure remains under threat.
- The U.S. Baker Hughes rig count fell to 548, down from 552, reflecting a cautious domestic response to extreme global price volatility.
Geopolitical Escalation Drives Oil to Multi-Year Highs
Global energy markets were jolted on Thursday as Dated Brent oil reached $141.37 per barrel, a price point not seen in nearly two decades. The surge followed a series of aggressive statements from President Donald Trump, who confirmed the destruction of the "biggest bridge in Iran"—identified by officials as the B1 bridge in Karaj. Trump warned that "much more is to follow" and urged Iranian leadership to "make a deal before it is too late."
A U.S. official stated the bridge was targeted because it was being used by Iranian armed forces to secretly move military assets. The escalation has intensified fears of a prolonged conflict, despite Russia's Ushakov claiming that the Strait of Hormuz remains open for Russian vessels. The market remains on edge as the potential for further infrastructure damage threatens to tighten global supply even further.
Amazon Imposes Fuel Surcharge on Merchants
In response to the sharp rise in energy costs, Amazon (AMZN) announced it will levy a 3.5% fuel surcharge on its fulfillment services beginning April 17. The surcharge is expected to impact millions of online sellers who rely on the company's logistics network. Analysts suggest this move reflects the growing pressure on e-commerce margins as gasoline and diesel prices spike globally.
The surcharge will apply to Fulfillment by Amazon (FBA) services in the U.S. and Canada, averaging an additional $0.17 per unit. This marks one of the most significant logistics price hikes for the company since the start of the regional conflict on February 28. Amazon (AMZN) stated the measure is necessary to offset "elevated costs in fuel and logistics" that have become unsustainable.
Political Shakeup: Blanche Steps in as Acting AG
In a surprise domestic development, President Trump removed Pam Bondi from her position as U.S. Attorney General. The President announced that Deputy Attorney General Todd Blanche will serve as the Acting Attorney General effective immediately. Trump noted that Bondi would be "transitioning to a new role in the private sector," though the timing of the move amid a foreign conflict has raised questions in Washington.
The leadership change comes as the House of Representatives remains in recess, with no immediate plans to return early to approve the Senate's DHS bill. Sources indicate that House leadership wants to see more progress on the reconciliation process before moving forward. The transition to Blanche, a long-time legal ally of the President, is seen by many as a move to consolidate control over the Justice Department during a period of national emergency.
Energy Infrastructure and Rig Data
Amid the chaos, the Israel Energy Ministry announced that the Leviathan rig will resume operations. The rig, a cornerstone of Mediterranean gas production, had been shuttered due to security concerns at the onset of hostilities. Its return is expected to stabilize local energy needs and fulfill export commitments to Egypt and Jordan, which have faced shortages during the shutdown.
Domestically, the Baker Hughes (BKR) rig count showed a decline in activity, with the total count falling to 548 from 552. Specifically, the rotary oil rig count dropped to 411 from 414, while gas rigs saw a slight increase to 130. The data suggests that while prices are at record highs, domestic drillers remain hesitant to aggressively expand production given the extreme geopolitical uncertainty and fluctuating demand forecasts.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.