Concerns About Rising Gas Prices
Patrick De Hahn, who directs oil analysis at GasBuddy, commented that even though there are worries about gas prices spiking due to possible Iranian actions in the Strait of Hormuz, he believes such increases “will not last long.”
In a recent discussion with Fox News Digital, De Hahn talked about the potential rise in gas prices following President Donald Trump’s weekend order for a strike on Iran’s nuclear facility, which raised fears about key shipping routes in Hormuz potentially being shut down.
He noted that, while a closure could lead to an increase in prices—possibly pushing averages to around $3.40 to $3.50 per gallon—such fluctuations are likely to be short-lived. His remarks were made prior to Iran’s retaliation, where missiles were launched at a U.S. base in Qatar, though no casualties have been reported.
“If Iran threatens to close the Strait of Hormuz, it could quickly push oil prices past the $80 mark,” De Hahn explained. “If they manage to succeed in any way, there might be a rise, but I think it’s probably temporary.”
De Hahn also mentioned that circulating rumors about major price spikes in gasoline should be taken lightly, suggesting that the community should be cautious with such forecasts.
The Strait of Hormuz, which is about 21 miles at its narrowest section, acts as a crucial pathway for oil transport. While the United Nations Convention on the Law of the Sea has jurisdiction over these waters, Iran’s significant military presence allows it to potentially restrict access.
Markets experienced slight increases on Monday, with oil futures showing some fluctuation but generally trending downward. De Hahn reflected on the current situation, indicating that just a few weeks ago, oil prices were in the mid-$60s. He pointed out that the number of U.S. rigs had been decreasing due to low prices, suggesting that if conditions continue, there might be an eventual rise in U.S. production.
As tensions grow in Iran, De Hahn highlighted that any effort by Iran to close the Strait could also negatively impact its own economy. Vice President JD Vance echoed this sentiment, stressing that such a move could lead to significant economic chaos both locally and internationally.
“Their economy is heavily reliant on the Strait of Hormuz,” Vance noted. “If they choose to jeopardize it, it’s a chaotic decision, and it raises the question of why they would take that risk.”
On Monday, Iran’s parliament voted to support closing the strait, indicating a serious consideration of this strategy. Fox News Digital has reached out to the Departments of Energy and Treasury for further comment but has yet to receive a reply.
