WASHINGTON, D.C. — Global energy markets are feeling the impact of a major shipping blockade in the Middle East.
Iran’s military has effectively shut down traffic through the Strait of Hormuz — a narrow waterway that carries about twenty percent of the world’s oil supply on a daily basis.
Three weeks in, the ripple effects of the conflict are already showing up at the pump.
As of Monday morning, the average price for a gallon of gas stood at $3.72 — the highest since October 2023. U.S. crude jumped to just over $100 a barrel, up from $66 a barrel before the conflict began. President Donald Trump is now urging allies to help reopen the waterway.
“The president is absolutely right to call on these countries to do more to help the United States to reopen the Strait of Hormuz so that we can stop this terrorist regime from restricting the free flow of energy,” said White House Press Secretary Karoline Leavitt.
The president said he has asked countries including China, France, Japan, South Korea and the United Kingdom to send warships to help secure the route.
“We’re always there for NATO. We’re helping them with Ukraine,” said Trump. “It’d be interesting to see what country wouldn’t help us with a very small endeavor which is just keeping the strait open.”
As of Monday afternoon, no country has publicly committed warships to break the blockade. Leaders in the U.K. said they’re opposed to sending troops but reaffirmed their commitment to explore ways to reopen the strait.
“We have to reopen the Strait of Hormuz to ensure stability in the market. That is not a simple task. So we are working with all of our allies, including our European partners, to bring together a viable collective plan that can restore freedom of navigation in the region as quickly as possible,” said U.K. Prime Minister Keir Starmer on Monday.
The Trump administration has also temporarily lifted some sanctions on Russian oil already stranded at sea in an attempt to ease the global energy shortage. But some European officials warn the move could benefit Moscow as Russia continues attacking Ukraine.
“The easing of sanctions on oil on Russia by U.S. is a dangerous precedent because right now we need them to have less money for waging the war than more,” said Kaja Kallas, high representative for foreign affairs and security policy for the European Union.
The president also suggested China — which imports large amounts of oil through the strait — should play a role.
Energy experts say the longer the blockade lasts, the more economic pressure could build worldwide.
“That profound impact on the price of oil is having a profound trickle down effect on the price of gasoline, diesel, jet fuel and other petroleum products derived from oil,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan said diesel is approaching historic highs, which will likely impact costs for groceries and goods that need to be transported. He said the U.S. is relatively insulated from supply disruptions but not insulated from the price of supply disruptions.
“America’s spending hundreds of millions of dollars more on gasoline than every day a month ago, that’s certainly a significant economic toll. In addition, the price of diesel now just a penny away from reaching the $5 a gallon mark for just the second time in history,” said De Haan. “And that is going to have a profound trickle down impact on what motorists are spending at the grocery store when they buy goods online and when they travel for those summer vacations.”
