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

Driver Issued Citation After Tractor-Trailer Overturns on I-26W, Spilling Chicken Carcasses

SPARTANBURG COUNTY, S.C. (WSPA)— A driver has been cited after a crash…

Cold Case Solved: Murderer Sentenced 58 Years After Heinous Crime

(KTLA) – In what is being hailed as the oldest cold case…

Rising Worries Following the Recent Deaths of Gopher Tortoises at Honeymoon Island State Park

PINELLAS COUNTY, Fla. (WFLA) — State officials are investigating after numerous recent…

Defense Department Pauses Delivery of Certain Missiles and Munitions to Ukraine

(The Hill) The Department of Defense has halted the delivery of some…

Cyprus Leaders to Hold Informal Talks with UN Chief This Month

TANZANIA – This month, U.N. Secretary-General António Guterres plans to reconvene the…

Fourth of July Festivities Along Savannah’s Waterfront

SAVANNAH, Ga. () — To celebrate the Fourth of July, locals and…

Live Updates: Republicans Prepare for Key Vote on Trump Megabill Amidst Freedom Caucus Opposition

The House returned to the floor Wednesday night after several hours in…

Weather’s Impact: The Crucial Role It Plays in the Success of Your Fireworks Display

In Savannah, Ga., as the 4th of July approaches, anticipation builds not…

Augusta Launches Solar-Powered Streetlights

AUGUSTA, Ga. () – For Augusta drivers, it’s a first when it…

Del Monte, the 139-Year-Old Canned Foods Giant, Files for Bankruptcy Protection

Del Monte Foods, the 139-year-old company best known for its canned fruits…

Exploring Notable and Short-Lived Band Reunions: Nirvana, Outkast, and Others Before Oasis’ Tour

NEW YORK – “Don’t Look Back in Anger” seems to be fitting…

The Dalai Lama Emphasizes China’s Non-Interference in Succession Decisions

On Wednesday, the Dalai Lama declared that the established Tibetan Buddhist tradition…