US Economy Could Be In Dire Straits As Hormuz Slams Shut

Pain at the pump is here, and it could be here to stay.

Brent crude, the oil blend that sets worldwide prices, has jumped 24% to over $90 a barrel since Operation Epic Fury began. The highest Brent price of Trump’s second term is already impacting U.S. gasoline prices.

Despite the U.S.-backed war risk insurance that President Donald Trump offered all maritime operators in the Strait of Hormuz, traffic remains down 90% since Iranian retaliatory strikes began. Refineries have no way to ship their oil, and some are halting extraction as storage facilities hit capacity.

U.S. gasoline prices move in tandem with Brent crude. For every $10 Brent increase, U.S. gas prices rise roughly 24 cents per gallon. Since striking Iran, the AAA national gas average price increased from $2.98 to $3.32. Gasoline prices haven’t risen comparably since the Russia-Ukraine War began in March 2022.