President Donald Trump warned Americans that gas prices may continue to increase through the midterm elections later this year. The war against Iran has caused substantial disruptions to the oil market.
When asked about the possibility that gas prices will continue to increase, the President said, “It could be, or the same, or maybe a little bit higher, but it should be around the same.”
After the US and Israel started the war against Iran with a surprise attack on February 28, Tehran seized control of the Strait of Hormuz. Most tankers have been blocked from leaving the Persian Gulf. Only a small number of vessels that paid a toll to Tehran were allowed to exit the Gulf.
The closure of the Strait has locked up about 15% of the global oil supply in the Persian Gulf. Additionally, energy infrastructure in the region has been damaged, and some critical facilities will take years to repair.
The war shocked the oil market, sending oil prices over $100 per barrel. In an effort to keep prices from rising further, Trump suspended sanctions on oil exports from Venezuela, Russia, and Iran.
However, the President now seems to have abandoned the effort to increase the global oil supply. On Sunday, he announced that the US was now imposing a full blockade on the Strait of Hormuz and ordered the Navy to seize any vessel that paid a toll to Tehran.
The AAA national average for the price of a gallon of gas is now $4.12.
