Gasoline price pressures Trump: "Filling up 50 times a year"
US gasoline prices have increased by 20 percent since the start of the war and are now at the highest level in all of Donald Trump's years as president, writes the Financial Times.
The price at the pump has increased for eleven consecutive days since oil shipments through the Strait of Hormuz stopped. With the cost of living still a key issue in the US, Trump is being pressured by the development. Especially in a country where many people are completely dependent on their cars.
- Americans fill up 50 times a year. That's 50 opportunities to regret their last vote, says Kevin Book, head of research at the research firm Clearview.
US Energy Secretary on $200 a Barrel: “Unlikely”
Oil prices are not expected to rise to $200 a barrel – as Iran has suggested – despite tankers being stuck in the Strait of Hormuz, according to US Energy Secretary Chris Wright.
– I would say it is unlikely, but we are focused on the military operation and on solving the problem, he said, according to Reuters.
At the same time, Wright said that the US Navy could “quite likely” escort ships through the strait before the end of the month.
IEA: War creates historic disruption to the oil market
Oil production in the Gulf states has fallen sharply since the war in Iran restricted traffic through the Strait of Hormuz. At least 10 million barrels per day have disappeared from the market, according to the International Energy Agency (IEA).
“The war in the Middle East is creating the largest supply disruption in the history of the global oil market,” the organization writes in a new report.
Global oil production is expected to fall by 8 million barrels per day in March to its lowest level in four years, although increased production in countries such as Russia may partially mitigate the effect.
Minister on X Post: A Communication Mistake
US Energy Secretary Chris Wright posted a post on X on Tuesday stating that the US had escorted a tanker through the Strait of Hormuz. The market reacted positively to the news. But it turned out to be untrue, which caused oil prices to rise again.
Now the minister says that the post was published due to a “communication misstep”, writes WSJ.
– I take full responsibility for the post. It is very unfortunate, and it should not happen again, he tells Fox News.
The oil crisis - it's about the point
- The Strait of Hormuz was blocked after the US and Israel attacked Iran, which stopped large parts of the world's oil transport.
- Oil prices surged to $120 a barrel, their biggest weekly gain since 1983, sending global gasoline prices soaring.
- Several merchant ships have been attacked in the Strait of Hormuz and the Persian Gulf, causing shipping companies to halt shipping.
- Major oil-producing countries have been forced to cut production as storage capacity fills and export routes are blocked.
- The International Energy Agency has decided to release 400 million barrels of oil from strategic reserves to cushion the price shock, but experts say it will have limited effect.
