US strikes on Iran may raise oil prices, impacting American economy
Share this @internewscast.com

(NewsNation) — Americans could soon feel the impact of escalating tensions with Iran, especially at the gas pump.

On Monday, oil prices surged to their highest level in five months after U.S. airstrikes targeted Iranian nuclear sites, raising fears that the cost could escalate further in the near future.

The complete economic consequences are still unclear, and much will hinge on Iran’s reaction, especially if it chooses to block the Strait of Hormuz.

Iran threatens to close Hormuz Strait

On Sunday, the Iranian Parliament approved a measure to close the waterway.

The U.S. Energy Information Administration reports that approximately 20 million barrels of crude oil transit through the strait daily. Positioned between Iran and Oman, this passage is a crucial oil transit route worldwide.

If Iran shuts it down, oil prices would likely spike globally, with serious implications for the U.S. economy.

“The important thing to know is that the Strait of Hormuz ships 20% of global oil production,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While we are not a beneficiary — we are not a buyer of crude oil from Iran — the U.S. cannot detach itself from the global economy.”

US warns Iran against closing Hormuz Strait

The White House has not confirmed whether it anticipates further retaliation, but top officials have warned Iran against taking steps that could further escalate tensions.

Secretary of State Marco Rubio, in an interview with Fox News’ “Sunday Morning Futures,” warned closing the strait would be a “massive escalation that would merit a response from the U.S. and others.”

Vice President JD Vance went further, calling such a move “economic suicide” for Iran.

“Their entire economy runs through the Strait of Hormuz,” Vance told NBC’s “Meet the Press.” “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?”

Instead, he urged Iran to return to the negotiating table and abandon its nuclear weapons program.

“If they are willing to do that, they are going to find a willing partner in the United States of America,” Vance said.

Despite rising prices, De Haan said there’s no immediate reason to fear what he described as “apocalyptic” gas costs. Still, he warned the national average could increase by 10 to 25 cents per gallon within the next week or two.

Share this @internewscast.com
You May Also Like

“Portland Fire Name Revived for New WNBA Expansion Team”

PORTLAND, Ore. — Oregon’s WNBA team stepped back in time for its…

‘Thankful for My Life’: Tenant Shares Experience After Two Vehicles Collide with St. Petersburg Home

ST. PETERSBURG, Fla. (WFLA) — A woman is speaking out after surviving…

iPhone’s Emergency SOS Feature Rescues Woman in Bluffton Assault: Deputy Discusses Innovative Defense Tools

BEAUFORT COUNTY, S.C. () — Pushing two buttons at the same time…

Officials Report: Osceola County Deputies Used a Taser on a Man, Leading to His Death

Derik Bonet-Rodriguez, 31, pronounced dead at hospital (Copyright 2022 by WKMG ClickOrlando…

Rep. Ro Khanna to propose bipartisan legislation to unseal Epstein documents

(KRON) — Rep. Ro Khanna. D-Calif., is working on a bipartisan bill…

Israel Considers Increasing Role in Syria Amid Ceasefire Breakdown

DAMASCUS – Intense fighting erupted once more in the southern Syrian city…

After 31 Years, Indiana’s ‘Baby Hope’ and Her Parents Finally Identified by Police

FRANKLIN, Ind. (WXIN) – After more than three decades, investigators have identified…

Trump’s Ambitious Redistricting Goals in Texas: A Political Analysis

Welcome to the digital version of From the Politics Desk, an evening…

Champaign Set to Decide on New Plan to Decrease Gun Violence

CHAMPAIGN, Ill. (WCIA) — On Tuesday night, the Champaign City Council is…

Marion, VA Resident Gets 4-Year Prison Term for Involvement in Fentanyl Smuggling

MARION, Va. (WJHL) — A Marion, Va. man was sentenced to serve…

LIVE RADAR: Central Florida Under Flood Watch

ORLANDO, Fla. – A flash flood warning is in effect for northwestern…

Nextdoor Enhances Platform with Local News Partnerships

NEW YORK (AP) — Nextdoor, the social networking platform focused on building…