The international crude oil benchmark Brent traded around $95 per barrel on Friday, up nearly 20 percent since August 4, as the ongoing Iran conflict continues to disrupt global energy supplies and reshape the economic landscape for Texas producers.

The price surge has been driven by the continuing crisis in the Strait of Hormuz, where shipping has been reduced to a trickle since the US-Israel war on Iran began six months ago. Before the war, an average of around 100 ships and 20 million barrels of oil passed through the waterway each day. That has fallen to an average of seven vessels since March, according to PortWatch data.

For Texas, the world’s largest oil-producing region after Saudi Arabia and Russia, the price increase represents a significant revenue boost. The state’s Permian Basin, which accounts for more than 40 percent of US oil production, has seen increased drilling activity as higher prices make previously marginal wells economically viable.

However, the dynamics are more complex than a simple boom for Texas energy. The same price increases that benefit producers are putting pressure on consumers and businesses. US inflation in July was 3.4 percent from a year ago, but economists warn that figure is likely to rise as higher energy costs filter through the economy. August inflation data will not be released until September 11.

The federal government is widely expected to raise interest rates before the end of the year due to rising energy prices and continued trade tensions. Such a move could slow economic growth and dampen demand, creating a tension between short-term gains for Texas oil producers and longer-term economic headwinds.

The oil price surge is also accelerating investment in Texas energy infrastructure. Companies are expanding pipeline capacity, storage facilities, and processing plants to capitalize on the elevated price environment. The state’s strategic position, with Gulf Coast export terminals that can ship to Europe and Asia, has become even more valuable as Gulf oil shipments through Hormuz face disruption.

Some Texas energy companies are also benefiting from the global push for energy security. Asian countries are racing to build oil storage capacity closer to home, and several are exploring storage deals with US exporters, including facilities along the Gulf Coast. India is considering storing strategic reserves at the UAE port of Fujairah, while also expanding its imports from US sources.

The situation has created an unusual dynamic where geopolitical instability is benefiting Texas energy producers even as it harms the broader economy. How long this lasts depends on the trajectory of the Iran conflict and whether the Strait of Hormuz can be reopened to normal traffic.

Sources: BBC Business, NBC News, Al Jazeera