Gas prices increase as Iran announces plan to create an ‘exclusion zone’ around Strait of Hormuz
Iran’s plan to create an “exclusion zone” near the Strait of Hormuz and U.S. strikes on Iranian oil tankers have escalated tensions, sparking fears of rising gas prices.
WASHINGTON —
As Americans return home this Labor Day, tensions between the U.S. and Iran over a vital oil shipping route could lead to higher gas prices.
Overnight, Iran revealed plans to establish an “exclusion zone” near the Strait of Hormuz, aiming to block ships from transiting the waterway. This announcement came just one day after the U.S. struck three Iranian oil tankers in response to Tehran launching missiles at U.S. warships.
Experts have described the situation as a dangerous escalation, pointing to Iran’s previous attacks at sea that targeted commercial shipping.
Concerns are growing that gas prices may continue to rise unless the conflict sees a significant resolution.
On Monday, AAA is reporting the average price for a gallon of regular gas is $4.15. One year ago, the average price for a gallon of regular gas was $3.19.
Despite the heightened tensions, Energy Secretary Chris Wright remained optimistic about energy prices.
“Our transits through the Strait are averaging over 9 million barrels a day now, and with the access pipelines that go around the strait, we’re probably two-thirds or more of pre-conflict flows,” Wright said. “So the Iranians are still causing trouble, but the United States Navy is winning that battle.”
The ongoing conflict and its impact on gas prices are also increasing pressure on Republicans as the midterm elections approach in less than two months.
According to a recent Reuters/Ipsos poll, a quarter of Americans think the Iran war is worthwhile. Forty-nine percent of people strongly disapprove of the way President Trump’s been handling Iran, and 54% of people do not think the U.S. taking military action in Iran was worth it.
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