A severe conflict between the United States, Israel, and Iran began in late February of this year, and while little damage has occurred on American soil, we have felt the impact of this war most notably through spiking gas prices.
Iran controls a waterway between the Persian Gulf and the Gulf of Oman called the Strait of Hormuz, which holds 20% of the world’s oil and liquified natural gas. When conflict threatens this area, shipping of oil becomes riskier and more expensive, therefore slowing the price of oil and raising costs for companies. These disruptions and the greater fear of shortages push up global oil prices, leading to higher gas prices for consumers.
The current average gas price across the U.S. is $4.108 per gallon, and in North Carolina $3.84 per gallon. Two days before the initial attack on Iran on Feb. 26, the national average was just $2.98. Diesel prices in particular are currently 40% more than they were before the conflict. These prices are the highest since August 2022, when Russia’s invasion of Ukraine began to affect worldwide energy markets.
On April 12, President Trump announced the U.S. would be implementing a blockade after Iran’s capital Tehran did not agree to reopen the Strait of Hormuz.
In a new deleted Truth Social post, President Trump specifically referred to this as a blockade on the Strait; however,
in a press briefing, Joint Chiefs of Staff Chairman Dan Caine clarified, “The U.S. action is a blockade of Iran’s ports and coastline, not a blockade of the Strait of Hormuz.”
As of April 18, 23 ships approaching the Iranian port have been turned away by U.S. forces.
In an X post on Friday, April 17, Iranian Foreign Minister Seyed Abbas Araghchi reported the strait to be “completely open” for all commercial vessels during the two-week ceasefire period between the U.S. and Iran.
Soon after, President Trump stated on Truth Social, “Iran has agreed to never close the Strait of Hormuz again. It will no longer be used as a weapon against the World!” and “THE STRAIT OF HORMUZ IS COMPLETELY OPEN AND READY FOR BUSINESS AND FULL PASSAGE, BUT THE NAVAL BLOCKADE WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN, ONLY, UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE. THIS PROCESS SHOULD GO VERY QUICKLY IN THAT MOST OF THE POINTS ARE ALREADY NEGOTIATED.”
The morning of Saturday, April 18, however, The Islamic Revolutionary Guard Corps (IRGC) claimed that the U.S’s blockade constitutes “acts of piracy and maritime theft” and that Hormuz is currently under tight control by Iran, back to its “previous state.”
The uncertainty on the state of the Strait of Hormuz has left Americans wondering when they will see their gas prices back to normal. Following the announcement of the reopening of the Strait of Hormuz on April 17, Patrick De Haan, head of petroleum analysis at GasBuddy, predicted that gas prices would fall to $3.65-$3.95 by Memorial Day. With the recent announcement of the Strait being closed again, it’s likely his prediction no longer holds up.
Even at times when the strait is “open,” ongoing military presence and the risk of escalation keep oil markets all around the world on edge, and Americans might not be seeing gas prices fall any time soon.
