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

Elon Musk Influences Jury Selection in Tesla Autopilot Death Case

Tesla CEO Elon Musk was not present in a Miami courtroom on…

Deadly Fire Engulfs Massachusetts Assisted-Living Facility, Leaving 9 Dead and Residents Trapped

FALL RIVER, Mass. (AP) — A devastating fire engulfed an assisted-living facility…

Postal Rates Increase: Discover the New Cost of Sending Mail

(NEXSTAR) The United States Postal Service (USPS) has, again, raised prices on…

Andrew Cuomo Announces Independent Candidacy for NYC Mayor, Unveils Key Proposal

() Former New York Governor Andrew Cuomo is expected to announce this…

Texas Flood Victim Search to Continue Following Additional Rainfall

KERRVILLE, Texas (AP) — Crews were scheduled to continue the search on…

Key Information About the Deadly Fire at a Massachusetts Assisted Living Facility That Left 9 Dead

Nine individuals lost their lives and many others were injured in a…

FBI Agent Faces DUI Charge Following Knox County Accident, According to Court Records

MASCOT, Tenn. (WATE) — Court filings reveal that an FBI agent is…

Report Reveals ‘Avoidable Mistakes’ in Trump Assassination Attempt

() A newly released Senate report found the Secret Service made a…

Tragic Church Shooting in Kentucky Leaves 3 Dead, Including Suspect

LEXINGTON, Ky. (WDKY) — In Lexington on Sunday, a series of events…

Volunteers Break Multiple Program Records on First Day of 2025 MLB Draft

ATLANTA, Ga. (WJHL) – Major League Baseball (MLB) has setup camp at…

Senate to Vote This Week on Proposed Reductions in DOGE Spending

WASHINGTON – This week, Senate Republicans are set to assess the appeal…

Efforts to Find Texas Flood Victims to Continue Following Additional Rainfall

KERRVILLE, Texas (AP) — On Monday, crews were anticipated to continue searching…