NORWOOD, Mass. — President Donald Trump says the Strait of Hormuz will be blocked by U.S. Navy ships at 10 a.m. Monday. This is set to have a major impact on oil and gas prices.
The national average, according to AAA, is $4.13 a gallon for regular. In Massachusetts, the average is 16 cents cheaper at $3.97. Compare that to just a month ago—drivers were paying fifty cents less a gallon ($3.47). A year ago, prices were $2.96 a gallon.
After Trump’s blockade announcement, U.S. crude oil jumped 8% to more than $104 a barrel. The Strait of Hormuz is one of the most important waterways for oil and other energy products. Before the war began, hundreds of ships passed through a day, but since then, fewer than 10 have gotten through—and now that could be reduced to zero in a few hours—a plan some lawmakers are not on board with.
“You’re going to see these energy prices continue at record levels—not for weeks, but months and years—and how blockading the strait gets it open suddenly, I don’t get that logic,” said Sen. Mark Warner (D), Virginia.
“The part to really bring Iran to its knees is to go after it economically and you know I think making sure that the strait is open is the first part of that,” said Former UN Ambassador Nikki Haley. “I think the second part of that is going to be really important. It’s finally dealing with Russia and China.”
Just last week, oil prices dropped more than 12% with the ceasefire and hopes that a deal could be reached to end the war.
Iran’s parliament speaker posted on X to enjoy the current pump prices, and with the blockade, you’ll be nostalgic for $4–$5 dollar gas. Even President Trump said last night that prices could continue to rise.
How high could prices go? Back in 2022, almost four months into the war in Ukraine, gas prices reached their highest levels at $5.05 a gallon.
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