Gas prices in the United States are going up, and a military standoff in the Persian Gulf is making the situation more serious.
The average price of regular gas in the US reached $4.15 per gallon on Monday, according to UPI. That is 93 cents more than last year. Diesel prices are even higher at $5.68 per gallon, which is $2.06 more than a year ago. Just last month, gas prices were around $3.60, according to AAA. A year ago, they were $3.19.
What is happening at the Strait of Hormuz?
The main reason for the price increase is a military standoff in an important oil route. Donald Trump announced over the weekend that US forces would block the Strait of Hormuz after talks with Iran failed. The talks were led by Vice President JD Vance.
Also Read: Strait of Hormuz blockade: the complex regional realities the US ignores at its peril
The United States Central Command said on Sunday that naval forces would block “all maritime traffic entering and exiting Iranian ports,” starting Monday at 10am EST. However, it also said that ships going to and from non-Iranian ports would not be stopped. “CENTCOM forces will not impede the freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports,” the statement said.
This move comes as a response to an ongoing Iranian blockade that has already affected global oil supply for weeks after talks failed. According to UPI, ship movement in the area had already slowed down since the United States and Israel carried out strikes on Iran on February 28. Last week, Trump said there was a ceasefire to reopen the route but that did not last long.
Iran’s parliament speaker Mohammad Bagher Ghalibaf reacted strongly on his social media, saying the US action would make Americans “nostalgic for $4 to $5 gas.”
Also Read: Does Iran charge India a toll for the Strait of Hormuz passage? Tehran’s envoy answers
Oil prices are already reacting
Markets reacted quickly. According to UPI, Brent crude oil rose 7% to $102 per barrel, while West Texas crude increased 7.8% to $104 per barrel on Monday morning. US stocks also opened lower by as much as 1%.
Energy expert Michael Lynch from the Energy Policy Research Foundation told NewsNation that the current situation is an “insult to injury” for people already facing high costs. He said that even though gas prices dropped slightly over the weekend, prices are expected to rise again because of the ongoing US and Iranian blockades.
During an interview on Fox News on Sunday, Donald Trump spoke about gas prices and said, “I hope so. I mean, I think so, it could be, it could be, or the same or maybe a little bit higher, but it should be around the same.”
He also said the situation may not last long, adding: “I think this won’t be that much longer. They’re wiped out.”
