GasBuddy’s head of petroleum analysis spoke with Fox News Digital about rising concerns that gas prices will skyrocket after President Donald Trump ordered a strike on Iranian nuclear facilities over the weekend and the Middle Eastern nation weighs shutting down the critical Strait of Hormuz.
Patrick De Haan told Fox that an increase in gas prices for Americans “would likely be temporary” even if the Iranians go forward with shutting down a passage that facilitates roughly one-fifth of the world’s crude oil trade. His comments came before Iran retaliated by firing missiles at a U.S. base in Qatar, which intercepted those missiles. No casualties have been reported, Fox News’ Liz Friden reports.
TRUMP HINTS AT REGIME CHANGE IN IRAN WHILE DECLARING ‘MAKE IRAN GREAT AGAIN’ AFTER US STRIKES
“If Iran mentions closing the Strait of Hormuz, you can see a quick spike in oil past the $80 barrel mark,” De Haan explained. “That could bring a national average of $3.40 to $3.50. If they’re mildly successful in carrying that out, oil could go even higher, but it would likely be temporary.”
“Continued incorrect/false rumors talk about an incoming massive spike to [gas prices],” the GasBuddy expert posted to X. “This is erroneous. Incorrect on the highest order.”
The Strait of Hormuz is roughly 21 miles wide at its narrowest point. It lies between the Gulf of Oman and the Persian Gulf and serves as a connection through the Arabian Sea. The key natural waterway is technically governed by the United Nations Convention on the Law of the Sea, but Iran’s large military presence in the region would give them the ability to restrict passage.
HOW IRAN CLOSING THE STRAIT OF HORMUZ WOULD IMPACT US, WORLD
Markets edged slightly higher Monday with oil futures fluctuating, but remaining mostly down during early trading hours.
“Keep in mind, oil just weeks ago was in the low to mid 60s,” De Haan added. “Oil producers had cut back on rigs. That is the U.S. rig count, a sign of where oil production may go, had actually been pointing out that U.S. production may be nearing a peak, at least temporarily, because of low oil prices.”
But the downward trend in the price of oil now faces a heightened conflict in Iran. De Haan said that a move to shut down the Strait of Hormuz “would also be acting to stifle Iran’s own economy.”
RUSSIA CLAIMS US STRIKES ON IRAN HAVE OPENED A ‘PANDORA’S BOX’ AND COULD LEAD TO GLOBAL ‘NUCLEAR CATASTROPHE’
Vice President JD Vance also noted a decision to shut down the passageway would be a blow to Iran’s finances, telling NBC’s “Meet the Press” that closing the strait could “destroy their economy.”
“Their entire economy runs through the Strait of Hormuz,” Vance explained. “If they want to destroy their own economy, it can cause disruption in the world. I think that would be their decision, but why would they do that?”
The Iranian Parliament voted in favor of shutting down the passageway on Monday, signaling potential unity in the Middle Eastern country to go forward with the decision.
Fox News Digital reached out to the Department of Energy and the Department of Treasury but did not receive a response.
Read the full article here
